India's capital markets regulator responsible for protecting investor interests, regulating securities markets, and promoting market development.
The Securities and Exchange Board of India (SEBI) is the statutory regulatory body for the securities and commodity markets in India, established in 1988 and given statutory powers through the SEBI Act, 1992. Its mandate is to protect investor interests, regulate the securities market, and promote its orderly development.
SEBI's regulatory jurisdiction covers stock exchanges (NSE, BSE, MCX), listed companies, mutual funds, portfolio managers, investment advisors, brokers, depositories (NSDL, CDSL), credit rating agencies, and all intermediaries in the capital markets. No entity can operate in Indian securities markets without SEBI registration.
Key SEBI regulations that every Indian investor should know include: LODR (Listing Obligations and Disclosure Requirements) for listed companies, mutual fund regulations governing expense ratios and portfolio composition, the SEBI (Prohibition of Insider Trading) Regulations, takeover code for acquisitions, and the SEBI (Investment Advisers) Regulations governing fee-only advisors.
SEBI has progressively strengthened investor protection through measures like mandatory ASBA for IPO applications, T+1 settlement (reducing counterparty risk), peak margin collection, basic service demat account (BSDA) for small investors, and the SCORES platform for online complaint resolution. The regulator also mandates that listed companies report quarterly financials, disclose related-party transactions, and maintain minimum public shareholding of 25%.
Enforcement is a critical SEBI function. The regulator conducts investigations into market manipulation, insider trading, and fraudulent schemes. It has the power to impose monetary penalties, ban individuals from the securities market, and direct disgorgement of ill-gotten gains. Major enforcement actions — like those against Sahara Group, NDTV promoters, and various pump-and-dump operators — demonstrate SEBI's increasing willingness to act against market misconduct.
India Context
Established 1988, statutory powers via SEBI Act 1992. Headquarters in Mumbai. Current chairman appointed by Government of India. SCORES portal for investor complaints.