In the context of financial regulation in India, the Securities and Exchange Board of India is what type of body?

Introduction / Context:
The Securities and Exchange Board of India is the main regulator for securities markets in India. Understanding its legal status is important for questions on Indian economy, governance and financial regulation. The type of body determines its powers, independence and relationship with other institutions.

Given Data / Assumptions:

• The question refers specifically to the legal nature of the Securities and Exchange Board of India.
• Possible classifications include constitutional, statutory, advisory and non statutory.
• Constitutional bodies are created by the Constitution, for example the Election Commission.
• Statutory bodies are created by an Act passed by Parliament or a state legislature.

Concept / Approach:
The Securities and Exchange Board of India was originally set up in the late nineteen eighties and was later given statutory powers through the Securities and Exchange Board of India Act, nineteen ninety two. A statutory body is one that derives its powers and responsibilities from a specific law. This gives the regulator authority to frame regulations, conduct inspections, impose penalties and protect investor interests.

Step-by-Step Solution:
1. Recall that constitutional bodies are mentioned explicitly in the Constitution of India, such as the Comptroller and Auditor General and the Union Public Service Commission. 2. The Securities and Exchange Board of India is not listed in the Constitution. 3. Instead, there is a separate law called the Securities and Exchange Board of India Act that defines its structure and powers. 4. A body created by such a specific Act of Parliament is called a statutory body. 5. Therefore, the Securities and Exchange Board of India is a statutory body established by an Act of Parliament.

Verification / Alternative check:
You can confirm this by noting that many exam guides group the Securities and Exchange Board of India together with other statutory regulators such as the Reserve Bank of India for banking, the Insurance Regulatory and Development Authority for insurance and the Pension Fund Regulatory and Development Authority for pension funds. They are all created and given powers by dedicated Acts, not by the Constitution.

Why Other Options Are Wrong:
Option A: The Securities and Exchange Board of India does not appear in any Article of the Constitution as a constitutional body.
Option B: It is not merely advisory; it has binding regulatory powers and can take enforcement action.
Option D: A non statutory body would lack formal legal authority, which is not true for a major market regulator.
Option E: It is a permanent regulator, not a temporary committee, and plays an ongoing role in supervising capital markets.

Common Pitfalls:
Students sometimes assume that all powerful institutions are constitutional, which is not correct. Many important regulators are statutory bodies. Another confusion arises from mixing advisory councils, which may lack enforcement powers, with statutory regulators. Always check whether the body has a dedicated Act governing its powers and functions; if so, it is typically a statutory body.

Final Answer:
Statutory body established by an Act of Parliament