Financial Crime World

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Banking Regulation in India

The Reserve Bank of India (RBI) plays a crucial role in regulating banks in India. Here are some key points about RBI’s objectives and regulations:

RBI Objectives

  • Maintain financial stability
  • Regulate banks to ensure they operate prudently

Key Regulations Enforced by RBI


  • Capital Adequacy Ratio (CAR): ensures that banks maintain a minimum capital adequacy ratio
  • Asset Quality Review (AQR): reviews the asset quality of banks
  • Prudential Norms: sets guidelines for prudent banking practices
  • Liquidity Requirements: ensures that banks have adequate liquidity to meet their obligations
  • Corporate Governance guidelines: promotes good corporate governance practices in banks
  • Anti-Money Laundering (AML) and Know Your Customer (KYC): regulates AML and KYC norms

Securities Market Regulation in India

The Securities and Exchange Board of India (SEBI) is the primary regulator for securities markets in India. Here are some key points about SEBI’s objectives and regulations:

SEBI Objectives

  • Protect investors
  • Regulate market operations
  • Listing requirements
  • Disclosure requirements
  • Investor education
  • Enforcement

Key Regulations Enforced by SEBI


  • Investor Protection: protects the interests of investors
  • Market Operations: regulates market operations to ensure fair and transparent trading
  • Listing Requirements: sets guidelines for listing on stock exchanges
  • Disclosure Requirements: requires companies to disclose certain information to the public
  • Investor Education: promotes investor education and awareness

Acts and Regulations in India

Here are some key Acts and Regulations related to banking and financial regulation in India:

Banking Regulation Act, 1949

Reserve Bank of India Act, 1934

Negotiable Instruments Act, 1881

Securities Contracts (Regulation) Act, 1956

Depositories Act, 1996

Securities and Exchange Board of India Act, 1992