In the secondary market, there are the stock exchanges, stock brokers (who are members of the stock exchanges), the mutual funds, financial institutions, Foreign Portfolio investors (FPIs), and individual investors. An active Secondary Market promotes the growth of the Primary Market and capital formation.
The Registrars and Transfer Agents, Custodians and Depositories are capital market intermediaries which provide important infrastructure services to both the primary and secondary markets.
Regulatory Environment - SEBI Act, 1992 : SEBI Act maintains its control and regulation over both the Primary and Secondary Markets.
The main objectives of SEBI Act are as follows - 1. Protecting the interests of the investors who invest in securities, 2. Promoting the development of the securities market, 3. Regulating the securities market