Capital market regulations are an absolute necessity in the face of the growing importance of the capital markets throughout the world. The development of a market economy is very much dependent on the development of the capital market. Regulation of capital market involves the regulation of securities. A well regulated capital market would lead more and more investors to partake in and contribute to further widening and developing of the economy. The regulatory rules enables the capital market to function more efficiently and impartially.
The chief capital market regulatory authorities worldwide are as follows:
U.S. Securities and Exchange Commission
Securities and Exchange Commission, Pakistan
Securities and Exchange Board of India
Securities and Exchange Commission, Bangladesh
Financial Services Authority, UK
Securities and Exchange Surveillance Commission
- Comision Nacional del Mercado de Valores, Spain
- Securities and Futures Commission, Hong Kong
- Authority of Financial Markets
- Financial Supervision Authority, Finland
- Canadian Securities Administrations, Canada
- Financial Supervision Commission, Bulgaria
- Australian Securities and Investments Commission
The United States Securities and Exchange Commission (SEC) performs the function of regulating and controlling the securities stock or industry market. Established in 1934, this authority is entrusted with the duty of bringing into force the federal securities law. A statutory requirement of public companies having to submit quarterly and annual reports to this commission. Those companies that involve themselves in fraudulent actions are brought to task by this commission. The capital market regulations imposed by Securities and Exchange Commission of USA look to regulate the stock market. The reports of the public companies are essential for investors for making crucial decisions for investing in the capital market. This commission enforces six important laws.
Canadian Securities Administrations regulates the capital market of Canada. The investors are protected from fraudulent and nefarious activities by this commission. This authority looks to establish a just, clear and dependable capital market system. This authority is responsible for developing the Canadian Securities Regulatory System.