Q.Explain the role of RBI and SEBI as regulators of the financial market.

India's financial market is regulated by two different bodies, each responsible for a different segment of the market. …

The Reserve Bank of India (RBI) is the regulator of the banking system and the money market — it oversees commercial banks, controls money supply and short-term interest rates, and regulates money-market instruments such as treasury bills and call money.

The Securities and Exchange Board of India (SEBI), established as a statutory body under the SEBI Act, 1992, is the regulator of the capital market. It registers and supervises intermediaries such as stock brokers and merchant bankers, frames rules for the functioning of stock exchanges and listed companies, and takes action against unfair or fraudulent trading practices, with the twin aim of protecting investors and promoting the orderly development of the capital market. …

Assuming SEBI regulates the entire financial market including banking — SEBI's jurisdiction is the capital/securities …