Tracing the Development of Securities Regulation: Lessons from US, UK and India

Securities regulation is essential for ensuring transparency, fairness, and investor confidence in capital markets. This article examines the historical evolution and development of securities regulation in three key jurisdictions: the United States, the United Kingdom, and India, offering valuable lessons in regulatory innovation, market adaptation, and investor protection. The United States laid the foundation of modern securities regulation following the 1929 stock market crash, enacting pivotal legislations like the Securities Act of 1933 and the Securities Exchange Act of 1934, which created the Securities and Exchange Commission (SEC). These laws focus on mandatory disclosures, fraud prevention, and stringent enforcement. The United Kingdom, on the other hand, has adopted a principles-based regulatory approach, characterised by flexibility and innovation. Laws such as the Financial Services Act (1986) and the creation of the Financial Conduct Authority (FCA) reflect the UK’s emphasis on broad guiding principles over prescriptive rules. India’s regulatory evolution has transitioned from colonial-era policies to the modern framework established by the Securities and Exchange Board of India (SEBI) Act, 1992. SEBI has been instrumental in fostering market stability, protecting investors, and adapting to rapid economic growth. By comparing these jurisdictions, the article highlights their strengths and challenges, emphasising the need for regulatory adaptation amid globalisation, technological advances, and the rise of digital assets. It underscores the importance of balancing global harmonisation with local market needs and offers insights for policymakers in developing economies to build effective, inclusive, and forward-looking securities regulatory frameworks.