Published Paper Details:

This study examines the impact of regulatory actions by the Securities and Exchange Board of India (SEBI) on stock market volatility. SEBI, as the chief regulatory authority overseeing India's securities markets, plays a crucial role in maintaining market stability and investor protection. The analysis focuses on how SEBI's regulations, including trading rules, disclosure requirements, margin policies, and market surveillance mechanisms, influence market volatility. SEBI's regulatory framework aims to enhance transparency and market integrity by setting comprehensive rules for trading, corporate governance, and financial reporting. By mandating timely and accurate disclosures, SEBI reduces information asymmetry, thereby fostering a more stable market environment. Additionally, SEBI's surveillance activities help detect and prevent market manipulation and insider trading, mitigating risks that can lead to excessive volatility. Policy measures such as adjusting margin requirements and implementing circuit breakers also have a significant impact on market stability. Higher margin requirements can reduce speculative trading, thereby lowering volatility, while circuit breakers are designed to prevent extreme market movements during periods of stress. Furthermore, SEBI's initiatives in investor education and market development contribute to a more informed investor base and a more diversified market, both of which can help stabilize market fluctuations. The study highlights the dual role of SEBI's regulatory actions in both mitigating and occasionally amplifying market volatility, depending on their design and implementation. By critically evaluating these regulatory measures, the study aims to provide insights into their effectiveness in stabilizing the Indian stock market and protecting investor interests.