What is SEBI?
SEBI — the Securities and Exchange Board of India — is India's capital markets regulator, established in 1988 and granted statutory powers under the SEBI Act in 1992. It functions under the Ministry of Finance, Government of India, and is headquartered in Mumbai's Bandra-Kurla Complex (BKC).
SEBI's mission: "To protect the interests of investors in securities and to promote the development of, and to regulate, the securities market."
What Does SEBI Regulate?
SEBI has authority over virtually every participant in India's capital markets:
- Stock exchanges: NSE, BSE, MCX, NCDEX — their rules, systems, and listing standards
- Listed companies: Disclosure requirements, insider trading rules, corporate governance
- Brokers and sub-brokers: Registration, compliance, client fund handling
- Mutual funds: Fund registration, AMC regulations, NAV disclosure, expense ratio caps
- Foreign Portfolio Investors (FPIs): Registration, investment limits, reporting
- Investment advisers and research analysts: Registration, code of conduct, conflict of interest rules
- Depositories: CDSL and NSDL are regulated by SEBI
- IPOs: Prospectus requirements, pricing, allotment, listing timelines
Key SEBI Powers
- Investigation: SEBI can investigate any entity for market manipulation, insider trading, or fraud
- Penalty: Issue fines up to ₹25 crore or 3x the profits from violations
- Ban: Bar individuals and companies from accessing securities markets
- Disgorgement: Force bad actors to return ill-gotten gains to a fund for investor compensation
- Search and seizure: With court approval, search premises and seize records
Major SEBI Regulations That Affect You
- ASBA for IPOs: SEBI mandated ASBA (blocked amount) for all IPO applications — your money stays in your bank until allotment
- T+1 settlement: SEBI moved India to T+1 (next-day) settlement — one of the fastest globally
- F&O retail loss disclosure: SEBI requires brokers to show that 89% of F&O retail traders lose money — you see this warning before activating F&O
- Mutual fund categorisation: SEBI's 2018 circular forced all MFs to have clearly defined, distinct categories — no more "flexi" fund names to mislead investors
- Research analyst registration: Anyone providing stock tips publicly must register with SEBI as RA or face action
- SME IPO tightening (2023–24): SEBI raised minimum application lots and required more diligence for SME IPO listings after manipulation concerns
How to Complain to SEBI
If you face fraud by a broker, AMC, or listed company:
- File a complaint on SEBI SCORES (scores.gov.in) — the official complaint portal
- SEBI forwards it to the relevant entity for resolution within 30 days
- If unresolved, SEBI takes direct action
- For broker disputes, also use your exchange's Investor Grievance Cell or IGRC
SEBI SCORES has resolved over 7 lakh complaints since launch. Average resolution time is 30–45 days.