Return to Glossary

The Securities and Exchange Board of India (SEBI) is the most important regulator of securities markets in India. SEBI is the counterpart of the Securities and Exchange Commission (SEC) in the U.S. Its stated objective is “to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto.”

• The Securities and Exchange Board of India (SEBI) is the leading regulator securities markets in India, analogous to the Securities and Exchange Commission in the U.S.
• SEBI has wide-ranging regulatory, investigative, and enforcement powers, including the ability to impose fines on violators.
• Some criticize SEBI for that they say is a lack of transparency and direct accountability to the public for an institution with such enormous powers.

According to the SEBI charter, it is expected to be responsible for three main groups:

1. The issuers of securities
2. Investors
3. Market intermediaries4

The body drafts regulations and statutes in a regulatory capacity, passes rulings and orders in a judicial capacity, and conducts investigations and imposes penalties in an enforcement capacity.

SEBI is run by a board of directors, including a chair who is elected by the parliament, two officers from the Ministry of Finance, one member from the Reserve Bank of India, and five members who are also elected by the parliament.5

Source: https://www.investopedia.com/terms/s/sebi.asp