It was amended in the years 1995, 1999, and 2002 to meet the requirements of changing needs of the securities market.
The Act provides for the establishment of Securities and Exchange Board of India following the Harshad Mehta scam.
Its Preamble describes its basic function as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incid thereto"[2] The management of Board is run by its members appointed by the central Government:[3] (1) Protect the interest of investors in securities market, regulate the securities market in India.
(2) Registering the depositories, investment schemes, mutual funds.
(3) Promoting fundamental education needed to invest in securities markets.