Financial regulation is a form of regulation or supervision, which involves financial institutions to fulfill certain requirements, restrictions and guidelines that aimed to maintain the integrity of the financial system. The primary objective of regulation of financial market is the pursuit of macroeconomics and microeconomics stability. Financial regulation also influenced the structure of banking sector by decreasing its borrowing cost and by increasing the variety of financial product available. The purpose of the paper is to secure the appropriate degree of protection for consumers by reducing the extent to which it is possible for a financially regulated business. Contribution to the protection and enhancement of stability of the financial system also regulated the foreign participation in the financial market.

The paper focuses on various investors programme that has certainly being developed by the ministry of finance under financial market regulation and also outline the guidelines for issuers and investors to secure the securities market. The objective of the study is to review the development of financial market regulation in India and to make appropriate suggestions for strengthen of financial market in Indian financial system.