SEBI — Securities and Exchange Board of India: Complete 101 Guide

Last updated: March 2026

What is SEBI?

The Securities and Exchange Board of India (SEBI) is India’s capital markets regulator. Established in 1992, SEBI protects investor interests, promotes fair markets, and develops the securities market. Think of it as the “police and traffic cop” for India’s stock exchanges.

Key Facts

• Founded: April 12, 1992
• Headquarters: Mumbai, with regional offices
• Chairman: Madhabi Puri Buch (2026)
• Jurisdiction: India (primary), global oversight
• Mission: Protect investors, develop markets

SEBI’s Mandate

Primary Functions

Powers (Under SEBI Act)

• Issue securities regulations
• Register market intermediaries
• Conduct investigations
• Impose penalties
• Search & seizure

SEBI Structure

Governing Body

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SEBI Board
├── Chairman (IAS/Expert)
├── 2 Members (Finance)
├── 1 Member (Law)
├── 3 Members (Market Experts)
└── 1 Member (Public Interest)

Departments

Markets SEBI Regulates

1. Stock Exchanges

2. Depositories

• CDSL - Central Depository Services
• NSDL - National Securities Depository

3. Market Intermediaries

• Stock Brokers
• Depository Participants
• Mutual Funds (via AMFI)
• Portfolio Managers
• Investment Advisors

SEBI Regulations for Investors

1. Disclosure Norms

• Financial: Quarterly results, annual reports
• Corporate Actions: Dividends, bonuses, splits
• Material Events: Mergers, acquisitions, litigation
• Insider Trading: Trading window closures

2. Investor Protection

• KYC: Mandatory identity verification
• Risk Disclosure: Product suitability
• Grievance Redressal: SCORES platform
• Compensation Fund: Investor protection fund

3. Trading Rules

• T+1 Settlement: Next-day settlement
• Margin Trading: Regulated leverage
• Derivatives: Position limits

Key SEBI Initiatives

1. Digital Transformation

2. Market Development

• REITs: Real Estate Investment Trusts
• InvITs: Infrastructure Investment Trusts
• Social Stock Exchange: NGO funding
• Gold ETFs: Alternative investments

3. Retail Focus

• SIP in Mutual Funds: Systematic Investment Plans
• Direct Plans: Lower expense ratios
• Demat Accounts: Paperless account opening

SEBI & Investor Types

Retail Investors

• Protection: Insider trading laws
• Education: Investor awareness programs
• Grievances: SCORES resolution in 30 days

Foreign Investors

• FPI Registration: Foreign Portfolio Investors
• Investment Limits: Sector-wise caps
• Reporting: Monthly disclosures

Institutional Investors

• Regulatory Compliance: Stricter norms
• ** disclosures**: Ownership above 5%
• Trading Limits: Position monitoring

SEBI Statistics (2026)

SEBI Regulatory Framework

For Companies (Issuers)

1. IPO Guidelines: Pricing, allocation
2. Listing Requirements: Minimum public shareholding
3. Corporate Governance: Board composition
4. Takeover Code: Acquisition thresholds

For Intermediaries

1. Registration: Mandatory licensing
2. Capital Adequacy: Financial soundness
3. Conduct Rules: Business practices
4. Audit: Regular compliance checks

For Investors

1. KYC: Identity verification
2. Risk Assessment: Suitability checks
3. Know Your Customer: PAN + Aadhaar
4. Nomination: Beneficiary designation

SEBI vs Global Regulators

SEBI Grievance Redressal

SCORES Platform

• Portal: scores.gov.in
• Process: Online complaint → Action → Resolution
• Timeline: 30 days maximum
• Status: Trackable

Investor Protection

• Compensation Fund: Investor protection corpus
• Mediation: SEBI mediation cell
• ** Lok Adalat**: Securities settlement

Recent SEBI Reforms (2025-2026)

Market Reforms

1. T+1 Settlement: Fully implemented
2. Unified KYC: Single registration across markets
3. Social Stock Exchange: For NGOs/charities
4. Tokenization: Securities data protection

Investor Reforms

1. Credit Risk in Mutual Funds: Enhanced disclosure
2. Fact Sheets: Standardized fund information
3. Nomination: Mandatory for demat accounts

Related Topics

Learn More

• 101 RBI - Reserve Bank of India
• 101 UPI - Unified Payments Interface
• 101 NPCI - National Payments Corporation

Consumer Rights Analysis

Investor Protection

• SEBI mandates disclosure norms for listed companies
• Investor awareness programs run by SEBI
• Protective measures against market manipulation

Privacy Implications

• Demat accounts linked to Aadhaar for KYC
• Trading history creates behavioral profile
• Algo trading data shared with regulatory authorities

Data Protection Concerns

• Trading Data: SEBI collects detailed trading patterns
• Demat Records: Shareholding details stored digitally
• IPO Applications: Linked to bank accounts

User Risks

• Fraud: Fake investment schemes, Ponzi schemes
• Market Volatility: No guarantee on returns
• Cyber Crimes: Trading account hacking

Safeguards

• Verify scheme registration with SEBI
• Use official platforms only
• Enable two-factor authentication
• Monitor Demat statements regularly

Complaints & Grievance Redressal

• SEBI SCORES: scores.gov.in (Online grievance)
• Stock Exchanges: NSE/BSE investor services
• Consumer Courts: For investment disputes
• Cyber Crime: For online fraud

Conclusion

SEBI plays a crucial role in maintaining investor confidence and market integrity. Its regulations protect your investments and ensure fair trading practices. Understanding SEBI helps you navigate India’s capital markets safely.

Next in series: 101 Mutual Funds →

This is part of the Cashless Watch 101 Series - Simplifying Indian Fintech for everyone.

Prime References

• SEBI Official Website - Securities and Exchange Board of India
• SEBI Circulars - Latest regulatory circulars
• SEBI Investment Adviser Regulations - IA regulations
• NSE - National Stock Exchange - India’s largest stock exchange
• BSE - Bombay Stock Exchange - Asia’s oldest stock exchange
• AMFI - Association of Mutual Funds - Mutual fund industry body
• SEBI Investor Awareness - Investor protection resources
• Demat Account - CDSL - Central Depository Services
• Demat Account - NSDL - National Securities Depository
• SEBI Smart ODR - Online dispute resolution