PRIMARY AND SECONDARY MARKETS UNDER SECURITIES LAW

AUTHOR – YOGESH* & MRUTYUNJAY SARAMANDAL**

STUDENTA AT HIDAYATULLAH NATIONAL LAW UNIVERSITY, RAIPUR

BEST CITATION – YOGESH & MRUTYUNJAY SARAMANDAL, PRIMARY AND SECONDARY MARKETS UNDER SECURITIES LAW, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (4) OF 2026, PG. 672-678, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/IJLRV6I464

Abstract

In India, primary and secondary securities markets are major institutions in terms of capital formation and successive trading activities. This paper is a critical analysis of regulatory framework that is set under the SEBI Act, 1992, the SCRA, 1956 and Companies Act, 2013. Using a doctrinal methodological approach, the paper assesses the overall contribution of disclosure requirements, market conduct rules and enforcement in creating efficient capital formation and securities market operation.

Disclosure requirements are the major type of investor protection in the primary market, comprising a prospectus liability, due diligence by those acting in the middle of the transaction, and regulatory oversight to the extent that the market is able to address information asymmetry at the point of issue. The secondary market, on the other hand, is more dependent on surveillance and enforcement mechanisms that focus on the prohibition of insider trading, manipulation of markets, and the effectiveness of institutional market infrastructure including exchanges, clearing corporations and depositories.

The paper concludes that the Indian securities market is normatively, but operationally, conditional. This leads to the necessity of balanced reforms to align disclosure standards, improve real-time surveillance provisions, and better redressal of grievances by investors.

Keywords: Primary Market; Secondary Market; Disclosure Obligations; Insider Trading; Investor Protection; Regulatory Enforcement