The correct answer is ??SEBI. The rules and regulations of the stock market are formulated by SEBI. The Securities and Exchange Board of India was established in 1988 as a non-statutory body but it established as a statutory body on April 12, 1992, in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. It is the principal regulator for Stock Exchanges in India. The headquarters of SEBI is situated in Mumbai. The regional offices of SEBI are located in Ahmedabad, Kolkata, Chennai and Delhi. SEBI functions to fulfill the requirements of Issuers, Investors and Intermediaries. Important Points It aims is to control activities of the stock exchange. It aims to protect the rights of stockholders and also to guarantee the security of their investment. It protects from fraudulence by harmonizing its statutory regulations and self-regulating business. It registers and regulates the working of mutual funds and it regulates takeover of the companies. SEBI is managed by its board of members (six members). It consists of a chairman (nominated by Central Government), two members (officers of central ministries), one member (from RBI) and the remaining two members are nominated by Central Government.