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Who regulates the money market in india

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Atharv Sankliya

1359 Points Posted on 01 January 2023

who regulates the money market in india
sebi or rbi ??

Replies (3)

Quick Summary

The Reserve Bank of India (RBI) is the primary regulator of India's money market, operating under various acts like the RBI Act, 1934. While SEBI is also a key financial regulator, the RBI specifically controls monetary policy and oversees banking operations. The RBI uses tools like Open Market Operations to manage money supply and ensure the smooth functioning of the financial system.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212441 Points Posted on 01 January 2023

The Reserve Bank regulates financial markets within the overarching statutory framework of the Reserve Bank of India Act, 1934, the Government Securities Act, 2006, Foreign Exchange Management Act, 1999, the Bilateral Netting of Qualified Financial Contracts Act, 2020 and the Payment and Settlement Systems Act, 2007.

In order to control money supply, the RBI buys and sells government securities in the open market. These operations conducted by the Central Bank in the open market are referred to as Open Market Operations.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212441 Points Posted on 01 January 2023

The primary financial regulator bodies in India include the

Reserve Bank of India (RBI),

Securities and Exchange Board of India (SEBI),

Insurance Regulatory and Development Authority of India,

Small Industries Development Bank of India (SIDBI), Ministry of Corporate Affairs, etc.

Different regulatory bodies have different structures and frameworks with their codes of conduct to ensure the integrity and smooth functioning of the financial system in India.