The following booklet titled “Regulation of the Capital Market and the Role of SEBI” was published on May 15, 1993, and was authored by G.V. Ramakrishna. In light of the dynamic international economic condition in the 1990s, the author, through this excerpt, discusses the role of capital markets and SEBI in the Indian economy. He vehemently believes that the twin engines of exports and capital market will put gears on the domestic economy. Emphasizing the role of the capital market, the author writes that savings are of primary importance in an open economy as capital itself comes from individual and institutional savings. He asserts that a deregulated economy must channel the savings of the people and the institutional savings into productive economic activity. However, to inspire the confidence of Indian investors in the capital market and the orderly growth of the capital market, a robust system of contract laws is of prime prerequisite. But, such a system is pointless if it is not supplemented by a transparent supervisory body that overlooks the rules and serves the interests of everyone who acts as per the law. Highlighting the various drawbacks and complications in the Indian capital market and the ineffective examination of the system by SEBI, the author asserts that simple rules and regulations that are effectively enforced and monitored will be advantageous for the economy.