Capital Market Growth — Policy Reforms

Entry	Year	Description	Impact
SEBI (Amendment) Act, 1995	1995	Enhanced SEBI's powers, making it more effective in regulating the securities market. It granted SEBI the power to register and regulate various market intermediaries and collective investment schemes.	Strengthened SEBI's authority, enabling it to better fulfill its mandate of investor protection and market development, moving beyond merely being a 'watchdog without teeth'.
Depositories Act, 1996	1996	Provided the legal framework for the establishment of depositories and the dematerialization of securities. It enabled holding and transfer of securities in electronic form.	Revolutionized the Indian capital market by eliminating physical share certificates, reducing risks of theft, forgery, and bad deliveries, and significantly improving settlement efficiency and transparency.
SEBI (Amendment) Act, 2002	2002	Further strengthened SEBI's enforcement powers, including the power to impose monetary penalties for various violations and to issue directions to market participants.	Provided SEBI with more teeth to enforce its regulations, deter market misconduct, and ensure greater compliance, thereby enhancing market integrity and investor confidence.
Companies Act, 2013	2013	Replaced the Companies Act, 1956, introducing significant reforms in corporate governance, investor protection, and corporate social responsibility. It streamlined processes for public offers and private placements.	Modernized corporate law, aligning it with global best practices. It enhanced transparency, accountability, and investor protection, particularly through stricter disclosure norms and provisions against insider trading, impacting primary market issuances.
SEBI (Amendment) Act, 2014	2014	Granted SEBI powers to call for information from any person, conduct search and seizure, and attach properties in cases of market violations. It also enhanced the penalty framework.	Further bolstered SEBI's investigative and enforcement capabilities, enabling it to tackle complex market frauds more effectively and ensuring a more robust regulatory oversight.
Companies (Amendment) Act, 2020	2020	Decriminalized several minor offenses under the Companies Act, converting them into civil defaults, and reduced penalties for certain non-compliances.	Aimed at promoting ease of doing business and reducing the burden on companies, while retaining criminal penalties for serious offenses, thereby balancing compliance with business facilitation.