{"id":7631,"date":"2026-04-24T08:12:00","date_gmt":"2026-04-24T08:12:00","guid":{"rendered":"https:\/\/www.nextias.com\/blog\/?p=7631"},"modified":"2026-04-24T13:52:44","modified_gmt":"2026-04-24T13:52:44","slug":"securities-and-exchange-board-of-india-sebi","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/","title":{"rendered":"Securities and Exchange Board of India (SEBI)"},"content":{"rendered":"\n<p>The <strong>Securities and Exchange Board of India (SEBI)<\/strong> is the <strong>statutory regulatory body<\/strong> established by the Government of India to regulate the securities market in India (stock market) and protect the interests of investors in securities. The <strong>securities market in India<\/strong> includes Stocks, Equities, bonds, debentures,which are used for raising capital (primary market) &amp; trading in securities (secondary market).<\/p>\n\n\n\n<p>After amendments in SEBI Act in 2014, the regulatory body has <strong>strong search and seizure powers<\/strong> similar to income tax officers to deal with <strong>Ponzi schemes and money pooling activities<\/strong>. SEBI can impose heavy fines such as in the Sahara case, the total amount of refund issued by SEBI was more than Rs. 24,000 crore, which shows that it enjoys considerable enforcement power.<\/p>\n\n\n\n<p>Constituted as a non-statutory body on April 12, 1988, and established under the <strong>SEBI Act, 1992<\/strong>, SEBI functions as a <strong>quasi-legislative, quasi-judicial, and quasi-executive body (quasi means having partial powers).<\/strong><\/p>\n\n\n\n<p>In recent years, under the leadership of <strong>Shri Tuhin Kanta Pandey (SEBI Chairperson)<\/strong>, SEBI has focused on <strong>digital governance, sustainability, and investor protection<\/strong> through several reforms such as <strong>SEBI Algo Trading Rules April 2026 and MF Lite Regulations 2026.<\/strong><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_56_1 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#About_Securities_and_Exchange_Board_of_India\" title=\"About Securities and Exchange Board of India\">About Securities and Exchange Board of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Objectives_of_Securities_and_Exchange_Board_of_India\" title=\"Objectives of Securities and Exchange Board of India\">Objectives of Securities and Exchange Board of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Evolution_of_Securities_and_Exchange_Board_of_India\" title=\"Evolution of Securities and Exchange Board of India\">Evolution of Securities and Exchange Board of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Organizational_Structure_of_SEBI\" title=\"Organizational Structure of SEBI\">Organizational Structure of SEBI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Power_and_Functions_of_SEBI\" title=\"Power and Functions of SEBI\">Power and Functions of SEBI<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Powers_Related_to_Issuers\" title=\"Powers Related to Issuers\">Powers Related to Issuers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Powers_Related_to_Investors\" title=\"Powers Related to Investors\">Powers Related to Investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Powers_Related_to_Intermediaries\" title=\"Powers Related to Intermediaries\">Powers Related to Intermediaries<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Role_of_SEBI_in_India\" title=\"Role of SEBI in India\">Role of SEBI in India<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Market_Regulation\" title=\"Market Regulation\">Market Regulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Market_Development\" title=\"Market Development\">Market Development<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Enforcement_of_Regulatory_Norms\" title=\"Enforcement of Regulatory Norms\">Enforcement of Regulatory Norms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Investors_Protection\" title=\"Investors\u2019 Protection\">Investors\u2019 Protection<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Sustainability_and_ESG_Initiatives\" title=\"Sustainability and ESG Initiatives\">Sustainability and ESG Initiatives<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Major_Achievements_of_Capital_Market_Regulator\" title=\"Major Achievements of Capital Market Regulator\">Major Achievements of Capital Market Regulator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Issues_Associated_with_SEBI\" title=\"Issues Associated with SEBI\">Issues Associated with SEBI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Initiatives_Taken_for_Effective_Functioning\" title=\"Initiatives Taken for Effective Functioning\">Initiatives Taken for Effective Functioning<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Investor_Education_and_Protection_Fund_IEPF\" title=\"Investor Education and Protection Fund (IEPF)\">Investor Education and Protection Fund (IEPF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#SCORES_Portal_SEBI_Complaints_Redress_System\" title=\"SCORES Portal (SEBI Complaints Redress System)\">SCORES Portal (SEBI Complaints Redress System)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Investor_Education_and_Financial_Literacy\" title=\"Investor Education and Financial Literacy\">Investor Education and Financial Literacy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#Way_Ahead\" title=\"Way Ahead\">Way Ahead<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#FAQs_on_SEBI\" title=\"FAQs on SEBI\">FAQs on SEBI<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#What_is_the_Securities_and_Exchange_Board_of_India_SEBI\" title=\"What is the Securities and Exchange Board of India (SEBI)?\">What is the Securities and Exchange Board of India (SEBI)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#What_is_the_Role_of_SEBI\" title=\"What is the Role of SEBI?\">What is the Role of SEBI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.nextias.com\/blog\/securities-and-exchange-board-of-india-sebi\/#When_was_the_Securities_and_Exchange_Board_of_India_Act_enacted\" title=\"When was the Securities and Exchange Board of India Act enacted?\">When was the Securities and Exchange Board of India Act enacted?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-2255ecc01769fa91a3caea1e17d4ac25\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"About_Securities_and_Exchange_Board_of_India\"><\/span><strong>About Securities and Exchange Board of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Securities and Exchange Board of India (SEBI) is the <strong>principal regulator of the securities market in India.<\/strong><\/li>\n\n\n\n<li>SEBI established as and functioned as a <strong>statutory body<\/strong> under the Ministry of Finance, Government of India.<\/li>\n\n\n\n<li>By ensuring that India\u2019s securities markets remain well-regulated, transparent, and vibrant, it plays a crucial role in <strong>safeguarding investors\u2019 confidence<\/strong> in the nation\u2019s economy.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-18673a29d64e6276db9eda094922968b\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Objectives_of_Securities_and_Exchange_Board_of_India\"><\/span><strong>Objectives of Securities and Exchange Board of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong>Securities and Exchange Board of India (SEBI)<\/strong> is the <strong>main regulator<\/strong> for the <strong>capital market in India.<\/strong> The body plays an active role in regulating practices that go contrary to ethics, including <strong>price manipulation and insider trading<\/strong>, while ensuring that the <strong>interests of investors<\/strong> are not compromised through <strong>transparency policies and grievances<\/strong> handling services. Besides, SEBI helps develop the capital market through infrastructure modernization and investor education.<\/p>\n\n\n\n<p>The <strong>primary objectives<\/strong> of Securities and Exchange Board of India are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>To act as the <strong>watchdog of the Indian capital market<\/strong><\/li>\n\n\n\n<li>To <strong>protect the interests of investors in securities<\/strong>, and<\/li>\n\n\n\n<li>To <strong>promote and regulate the securities market.<\/strong><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td>&#8211; The <strong>Headquarters of SEBI<\/strong> is located in <strong>Mumbai<\/strong>.<br>&#8211; It also has <strong>4 regional offices,<\/strong> located in <strong>Ahmedabad, Kolkata, Chennai, <\/strong>and <strong>Delhi.<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-4c36ea5f1698766a3ebf1d1310bde24f\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Evolution_of_Securities_and_Exchange_Board_of_India\"><\/span><strong>Evolution of Securities and Exchange Board of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Before SEBI came into existence, the Controller of Capital Issues was the regulatory authority of the Indian Securities Market.\n<ul class=\"wp-block-list\">\n<li>It derived authority from the Capital Issues (Control) Act, 1947.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>With the LPG reforms on the anvil, a need was felt in the late 1980s to have an independent body as a vigilant regulatory authority to protect the Indian financial system from external shocks.<\/li>\n\n\n\n<li>Accordingly, in <strong>April 1988, the Securities and Exchange Board of India was constituted<\/strong> as the regulator of capital markets in India <strong>through an Executive Resolution<\/strong> of the Government of India.\n<ul class=\"wp-block-list\">\n<li>Thus, <strong>initially<\/strong>, the it worked as a <strong>non-statutory body,<\/strong> without any statutory power.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Later, with the<strong> enactment of the Securities and Exchange Board of India Act, 1992,<\/strong> it became an <strong>autonomous and statutory body.<\/strong><\/li>\n\n\n\n<li>Today, SEBI has evolved further with modern frameworks like <strong>SEBI (Intermediaries) Regulations 2026,<\/strong> which strengthen accountability of brokers, advisors, and other market players.&nbsp;\n<ul class=\"wp-block-list\">\n<li>SEBI has introduced significant amendments to the <strong>SEBI (Intermediaries) Regulations, 2008<\/strong>. These changes primarily focus on the <strong>&#8220;Fit and Proper Person&#8221;<\/strong> criteria to balance the &#8220;<strong>ease of doing business<\/strong>&#8221; with robust regulatory oversight.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"439\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/HGVHV.png\" alt=\"securities and exchange board of india\" class=\"wp-image-7640\" style=\"aspect-ratio:2.050173678116557;width:441px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/HGVHV.png 900w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/HGVHV-460x224.png 460w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/HGVHV-768x375.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/HGVHV-696x339.png 696w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/HGVHV-861x420.png 861w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/HGVHV-533x261.png 533w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/HGVHV-150x73.png 150w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-ceec6594b841d65e0745ba4f9a959e5d\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Organizational_Structure_of_SEBI\"><\/span><strong>Organizational Structure of SEBI<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Securities and Exchange Board of India follows a corporate structure with a well-defined hierarchy.<\/li>\n\n\n\n<li>The <strong>Board of Directors <\/strong>sits at the <strong>top of the hierarchy<\/strong> and is responsible for the overall direction and management of the operations.<\/li>\n\n\n\n<li>Its <strong>Board of Directors<\/strong> comprises <strong>9 members,<\/strong> including:\n<ul class=\"wp-block-list\">\n<li>A Chairperson nominated by the Government of India.<\/li>\n\n\n\n<li>2 members from the Union Ministry dealing with finance &amp; administration of the Companies Act, 2013 (usually, the Union Ministry of Finance).<\/li>\n\n\n\n<li>1 member from the Reserve Bank of India (RBI).<\/li>\n\n\n\n<li>5 other members appointed by the Government of India.\n<ul class=\"wp-block-list\">\n<li>Of these 5, at least 3 shall be the Whole-Time Members.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>To strengthen ethical governance, SEBI has also proposed an <strong>Office of Ethics and Compliance (OEC)<\/strong> and a <strong>Digital Conflict Management System<\/strong> to ensure transparency and avoid conflicts of interest.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-28ff3cd26d000369fc68ea47ac2fc2c7\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Power_and_Functions_of_SEBI\"><\/span><strong>Power and Functions of SEBI<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Securities and Exchange Board of India is a <strong>quasi-legislative<\/strong> and <strong>quasi-judicial body <\/strong>that can draft regulations, conduct inquiries, pass rulings, and impose penalties. Its <strong>powers related to various players in the securities market <\/strong>can be seen as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-803f8977032d2777ef31d831aebbfdd6\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Powers_Related_to_Issuers\"><\/span><strong><strong>Powers Related to Issuers<\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Calling for information, undertaking inspection, conducting inquiries and audits of the stock exchanges, mutual funds, other persons associated with the securities market, intermediaries, and self-regulatory organizations in the securities market;<\/li>\n\n\n\n<li>Prohibiting insider trading in securities.<\/li>\n\n\n\n<li>SEBI has been at the forefront of implementing settlement reforms. Currently, India has adopted a T+1 settlement framework (Trade +1 day), wherein trades are settled in one day after the transaction is completed.<\/li>\n\n\n\n<li>Recently SEBI has Introduced&nbsp;\n<ul class=\"wp-block-list\">\n<li><strong>T+0 Settlement Beta List<\/strong> (same-day settlement for select stocks) to improve market efficiency<\/li>\n\n\n\n<li><strong>Sudarshan AI Monitoring<\/strong>, an AI-based system for detecting market fraud.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-a4fa477dc58c6f8ee5c9b655f6cf2137\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Powers_Related_to_Investors\"><\/span><strong><strong>Powers Related to Investors<\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Promoting and regulating self-regulatory organizations;<\/li>\n\n\n\n<li>Prohibiting fraudulent and unfair trade practices relating to securities markets;<\/li>\n\n\n\n<li>Regulating substantial acquisition of shares and takeover of companies;<\/li>\n\n\n\n<li>Promoting investors\u2018 education and training of intermediaries of securities markets.<\/li>\n\n\n\n<li>New investor-focused reforms:\n<ul class=\"wp-block-list\">\n<li>Ensuring <strong>SEBI Registered Name on Social Media<\/strong> to prevent fake financial influencers<\/li>\n\n\n\n<li>Faster grievance handling via digital platforms<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-9499afa8540deb47ace78f817add95f6\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Powers_Related_to_Intermediaries\"><\/span><strong><strong>Powers Related to Intermediaries<\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers, and such other intermediaries who may be associated with securities markets in any manner.<\/li>\n\n\n\n<li>Registering and regulating the working of venture capital funds and collective investment schemes, including mutual funds.<\/li>\n\n\n\n<li><strong>Recent updates include:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Regulation of <strong>AIF Inoperative Funds<\/strong> (inactive Alternative Investment Funds)<\/li>\n\n\n\n<li>Rules on <strong>Liquidation proceeds retention<\/strong> to protect investors during fund closure<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-5287ed6704aa09b4be51897ad8137990\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Role_of_SEBI_in_India\"><\/span><strong>Role of SEBI in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The role of SEBI in India can be seen as follows:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-e91d2d5e20c5737a85cd713ca93cdb78\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Market_Regulation\"><\/span><strong>Market Regulation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As the watchdog for the Indian Capital Market, it prescribes the conditions for issuer companies to raise capital from the public so as to protect the interest of the investors.\n<ul class=\"wp-block-list\">\n<li>The extensive disclosures prescribed for issuers facilitate informed investment decision-making by investors along with ensuring the quality of the issuer.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Reverse Charge Mechanism for FPIs<\/strong> (Foreign Portfolio Investors) to simplify taxation.<\/li>\n\n\n\n<li><strong>FPI Net Settlement 2026<\/strong> to streamline foreign investment settlements<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-2f7159ae242b9b209bbe039d20abead2\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Market_Development\"><\/span><strong>Market Development<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It takes measures to widen and deepen the securities markets by bringing changes in the micro and macro structures of the market.\n<ul class=\"wp-block-list\">\n<li>Some of the major <strong>market development measures undertaken by SEBI <\/strong>include \u2013 a transparent screen-based online trading system, shifting to electronic mode (demat), robust risk management framework, etc.<\/li>\n\n\n\n<li><strong>Fractional Ownership Platforms (FOPs)<\/strong> \u2013 allowing small investors to invest in assets like real estate.<\/li>\n\n\n\n<li>Limits like <strong>Greenfield projects 10% limit<\/strong> to manage risk in new infrastructure investments.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-e1bf6b878e508d60bc4d3b7727baf207\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Enforcement_of_Regulatory_Norms\"><\/span><strong>Enforcement of Regulatory Norms<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It ascertains compliance with its norms by carrying out inspections of registered intermediaries, and investigations<\/li>\n\n\n\n<li>It is vested with the power of civil court to call for information and records, to issue summons, to inspect, and to investigate entities associated with securities markets.<\/li>\n\n\n\n<li>It is also empowered to launch criminal proceedings against entities for breach of norms.<\/li>\n\n\n\n<li>Recent <strong>Securities Appellate Tribunal (SAT) 2026 rulings<\/strong> have further clarified SEBI\u2019s enforcement powers and investor rights.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-c41c8f541a701c18f4dabf0d4985abb5\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Investors_Protection\"><\/span><strong>Investors\u2019 Protection<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It facilitates the redressal of investors\u2019 grievances.<\/li>\n\n\n\n<li>In keeping with its belief that an informed investor is a protected investor, it promotes education and awareness of investors.<\/li>\n\n\n\n<li>It provides mechanisms for dispute redressal (arbitration at stock exchanges) and to compensate investors.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sustainability_and_ESG_Initiatives\"><\/span><strong>Sustainability and ESG Initiatives<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>SEBI is increasingly focusing on sustainable finance:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>BRSR (Business Responsibility and Sustainability Reporting)<\/strong> made mandatory for top companies<\/li>\n\n\n\n<li>Inclusion of <strong>Green Credit integration Principle 6<\/strong> encourages environmentally responsible business practices<\/li>\n\n\n\n<li>Promotion of <strong>ESG-labelled debt securities<\/strong> (green bonds, social bonds)<\/li>\n\n\n\n<li>Mandatory <strong>Value Chain Due Diligence<\/strong> to ensure ethical practices across suppliers<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-f96a52696a490a407cb9e0519abd83ad\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Major_Achievements_of_Capital_Market_Regulator\"><\/span><strong>Major Achievements of Capital Market Regulator<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Since its establishment, it has ensured a well-functioning securities market in India along with driving its development. Some of its major achievements can be seen as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dematerialization of shares<\/li>\n\n\n\n<li>Shortening settlement cycles<\/li>\n\n\n\n<li>Initiating nationwide electronic trading<\/li>\n\n\n\n<li>Introducing risk management systems<\/li>\n\n\n\n<li>Establishing clearing corporations<\/li>\n\n\n\n<li>Nurturing the mutual fund industry.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-03a415d471497cea74b0f418482fc449\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Issues_Associated_with_SEBI\"><\/span><strong>Issues Associated with SEBI<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Excessive focus on the regulation of market conduct and a lesser emphasis on prudential regulation.<\/li>\n\n\n\n<li>As compared to its counterparts in the US and the UK, it has been given much greater legislative as well as enforcement powers.\n<ul class=\"wp-block-list\">\n<li>It is empowered to impose serious restraints on economic activity just on the basis of suspicion, which, at times, leads to serious economic injury.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The component of prior consultation with the market and a system of review of regulations to see if they have met the articulated purpose is substantially missing. As a result, the fear of the regulator is widespread.<\/li>\n\n\n\n<li>Rules as well as enforcement of regulations are inadequate, particularly in areas like insider trading.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-647061bbd3db95a17c0529f30bf36da8\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Initiatives_Taken_for_Effective_Functioning\"><\/span><strong>Initiatives Taken for Effective Functioning<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-d5239ba26d625ef88f5ddde43213550b\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Investor_Education_and_Protection_Fund_IEPF\"><\/span><strong>Investor Education and Protection Fund (IEPF)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>IEPF has been established under Section 125 of the Companies Act, 2013 for the promotion of investor\u2019s awareness and protection of the interests of investors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-7068b064708b3289e9a81b1d5f5275a0\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"SCORES_Portal_SEBI_Complaints_Redress_System\"><\/span><strong>SCORES Portal (SEBI Complaints Redress System)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It has established the SCORES portal, a web-based centralized grievance redress system.<\/li>\n\n\n\n<li>It enables investors to lodge and follow up on their complaints and track the status of redressal of such complaints from anywhere.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-1f1208468f38f52108963ef9e52bdca0\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Investor_Education_and_Financial_Literacy\"><\/span><strong>Investor Education and Financial Literacy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It has taken several initiatives for Investor Education and Financial Literacy. This, in turn, enables better operation of markets and economy as well as protection of investors\u2019 interests.<\/li>\n\n\n\n<li>Some of the major initiatives taken in this direction include \u2013 Securities Market Awareness Campaign, Financial Literacy \u2013 cum \u2013 Counselling Centre, etc.<\/li>\n<\/ul>\n\n\n\n<p>Additionally, new reforms like <strong>MF Lite Regulations 2026<\/strong> aim to simplify mutual fund compliance for smaller players.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-f8e305d9fde03a5a582b678b0480605c\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Way_Ahead\"><\/span><strong>Way Ahead<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There is a need for an attitudinal change in order to <strong>shift the current focus from the regulation of market conduct to prudential regulation.<\/strong>\n<ul class=\"wp-block-list\">\n<li>In this regard, its foremost objective should be <strong>cleaning up the policy space<\/strong> in the financial market.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Emphasis should be put on <strong>continuous monitoring and improving market intelligence<\/strong> to strengthen market regulations.<\/li>\n\n\n\n<li>Instead of just using the volume of funds raised as a parameter for success, the SEBI needs <strong>deep review and research<\/strong> as to what can be done better.<\/li>\n\n\n\n<li>In order to strengthen its human resources, <strong>lateral entry<\/strong> can be considered to draw the best talent.<\/li>\n\n\n\n<li>With Indian financial markets still being segmented, one regulator can\u2019t be blamed for another\u2019s failure when the remit over a financial product overlaps. In this context, a <strong>unified financial regulator<\/strong> makes eminent sense to remove both overlap and excluded boundaries.<\/li>\n<\/ul>\n\n\n\n<p>By protecting investors, ensuring fair play, and facilitating market development, SEBI ensures a vibrant and trustworthy financial ecosystem that fuels India\u2019s economic aspirations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-c5a08ecdae502dc4f99126fbc8885ad4\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"FAQs_on_SEBI\"><\/span><strong>FAQs on SEBI<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1714463402165\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_the_Securities_and_Exchange_Board_of_India_SEBI\"><\/span><strong><strong>What is the Securities and Exchange Board of India (SEBI)?<\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>SEBI is a statutory body under the Union Ministry of Finance that acts as the principal regulator of the securities market in India.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1714463415143\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_the_Role_of_SEBI\"><\/span><strong>What is the Role of SEBI?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The primary roles of the Securities and Exchange Board of India include &#8211; acting as the watchdog of the Indian capital market, protecting the interests of investors in securities, and promoting &amp; regulating the securities market in India.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1714463433800\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"When_was_the_Securities_and_Exchange_Board_of_India_Act_enacted\"><\/span><strong><strong>When was the Securities and Exchange Board of India Act enacted?<\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>SEBI Act was enacted on 4th April, 1992, which made it an autonomous and statutory body.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Securities and Exchange Board of India (SEBI) stands as a cornerstone of the integrity and efficiency of the Indian financial system. <\/p>\n","protected":false},"author":9,"featured_media":7634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62],"tags":[72],"class_list":["post-7631","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-indian-economy","tag-gs-3"],"_links":{"self":[{"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/posts\/7631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/comments?post=7631"}],"version-history":[{"count":15,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/posts\/7631\/revisions"}],"predecessor-version":[{"id":23801,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/posts\/7631\/revisions\/23801"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/media\/7634"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/media?parent=7631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/categories?post=7631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/tags?post=7631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}