Who regulates the the secondary market for shares in India?

In India the secondary market for shares is governed by an
organization called the Securities and Exchange Board of India or
SEBI.

The Indian Stock market was largely unregulated prior
to the creation of the SEBI. In 1990, a trader named Harshad Mehta started to misuse
loopholes in the banking system as well in the delivery mechanism of stocks bought and
sold on the Bombay Stock Exchange. The result was one the fastest bull runs in the
history of the Indian stock market. Almost INR 40 billion were siphoned from the banking
system to manipulate stock prices to extraordinarily high levels. In 1992, when the scam
was finally discovered, millions had lost their lives' fortunes and the incident had
adversely affected the reputation of the Indian stock
markets.

To bring investors back into the stock market and
attract foreign fund houses, the stock markets had to be made safe and well-regulated.
The Securities and Exchange Board of India Act, 1992 was passed and under its provisions
SEBI was set up.

The regulatory body closely monitors all
transactions that go on in the stock markets and any cases of price rigging or
manipulation are immediately dealt with.