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Thus, as far as the secondary market is concerned, the SEBI's role is limited to market-related developments, and not to the companies themselves. This function comes in the domain of the Department of Company Affairs, and especially the Registrar of Companies. Unfortunately, the operation of these entities leaves much to be desired.
Mention has already been made of the excessive confidentiality regarding company information, but the situation is even worse than that. Indian companies routinely get away with non-compliance with the reporting requirements, and quite often companies close without the regulator even being aware of the fact. As a consequence, secondary market participation is fraught with enormous informational risk arising out of poor regulatory practices.

P. Chidambaram had emphasised the need to strengthen corporate bond market. The definition of securities under the Securities Contract (Regulation) Act was amended to provide a legal framework for trading in securitised debt. This is expected to ensure that corporate bond market catches up with the equity market.