Abstract

The stock exchange is a cornerstone of the global economy. It enables capital formation, investment, and economic growth. It serves as a dynamic platform where investors and companies interact, driving financial activities worldwide. Among its key participants are intermediaries, who act as facilitators, brokers, and advisors in the trade of securities. Their roles are indispensable in ensuring the smooth functioning of markets, providing expertise, and connecting buyers with sellers. Legal frameworks governing the activities of intermediaries are critical to maintaining transparency, fairness, and efficiency in stock exchanges. These frameworks define the responsibilities and obligations of intermediaries, ensuring adherence to ethical standards and regulatory compliance. They also safeguard investor interests by promoting accountability and deterring malpractices such as insider trading or market manipulation. This article delves into the intricate legal dimensions of intermediary roles in stock exchanges, highlighting the regulatory obligations imposed on them. It examines how laws shape their conduct, focusing on requirements like licensing, disclosures, and fiduciary duties. Furthermore, it explores how these regulations vary across jurisdictions and evolve with the complexities of modern financial markets. By analysing international legal precedents, regulatory frameworks, and case studies, this study sheds light on the pivotal functions of intermediaries in fostering trust and stability in the stock market ecosystem. It emphasizes the need for robust legal oversight to adapt to emerging challenges, such as the rise of algorithmic trading and digital assets. Ultimately, this study provides a comprehensive understanding of the legal landscape surrounding intermediaries, underscoring their significance in ensuring the integrity and efficiency of stock exchanges. The evolving regulatory approaches across the globe highlight the ongoing efforts to balance market innovation with investor protection.

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