The Securities and Exchange Board of India (SEBI) is the principal regulatory authority overseeing the securities and capital markets in India.
Established in 1988 and granted statutory powers in 1992 through the SEBI Act, it functions as the guardian of investor interests and the promoter of fair, transparent, and efficient market practices.
SEBI’s primary mandate is to protect investors, regulate market intermediaries, and ensure orderly development of the securities market.
It formulates and enforces rules for all key stakeholders—including listed companies, stock exchanges, brokers, mutual funds, investment advisors, portfolio managers, and credit rating agencies.
Key functions of SEBI include:
- Preventing insider trading, fraudulent practices, and market manipulation
- Regulating Initial Public Offerings (IPOs) and ensuring transparent and accurate disclosures by companies
- Monitoring mutual funds and ensuring they adhere to investment norms and operate in the best interests of investors
- Granting licenses to intermediaries and supervising their conduct and compliance
- Promoting corporate governance and disclosure norms among listed companies
- Overseeing takeover regulations, delisting procedures, and buyback norms
1. Regulatory – Laying down rules and guidelines for market conduct
2. Quasi-judicial – Conducting hearings, passing rulings, and imposing penalties
3. Developmental – Promoting investor awareness and financial education
SEBI also operates platforms like SCORES (SEBI Complaints Redress System) to help investors resolve grievances against market participants efficiently.
By performing these roles, SEBI maintains the integrity of India’s capital markets, builds investor confidence, and supports the orderly growth of financial markets in the country.