{"id":12245,"date":"2026-05-22T13:39:13","date_gmt":"2026-05-22T13:39:13","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/sebi-2\/"},"modified":"2026-05-22T13:39:13","modified_gmt":"2026-05-22T13:39:13","slug":"sebi-2","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/sebi-2\/","title":{"rendered":"SEBI"},"content":{"rendered":"<p>The Securities and Exchange Board of India, or <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sebi\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>SEBI<\/a>, is the statutory regulator of India&rsquo;s securities markets. Established in 1988 and given statutory powers by the SEBI Act of 1992, it oversees <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stock-exchange\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">stock exchange<\/a>s, <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/broker\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">broker<\/a>s, <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/mutual-fund\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">mutual fund<\/a>s, depositories, listed companies, and virtually every market participant in India. Knowing what SEBI does &#x2014; and what protections it provides &#x2014; is essential for any Indian investor.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>SEBI is India&#x2019;s capital market regulator, established in 1992 by Act of Parliament.<\/li>\n<li>Mandate: investor protection, market development, regulation.<\/li>\n<li>Regulates stock exchanges, brokers, mutual funds, listed companies, AIFs and more.<\/li>\n<li>Issues circulars, conducts inspections, and can impose monetary and non-monetary penalties.<\/li>\n<li>SEBI complaint mechanism (SCORES) protects retail investors.<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"sebi-s-three-core-mandates\">SEBI&#x2019;s three core mandates<\/h2>\n<ul>\n<li><strong>Protection of investors:<\/strong> Set rules, monitor market behaviour, prevent fraud.<\/li>\n<li><strong>Development:<\/strong> Introduce new products and reform processes to deepen markets.<\/li>\n<li><strong>Regulation:<\/strong> Lice<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>nse<\/a> intermediaries, set disclosure norms, enforce compliance.<\/li>\n<\/ul>\n<h2 id=\"whom-sebi-regulates\">Whom SEBI regulates<\/h2>\n<ul>\n<li>Stock exchanges (NSE, <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>BSE<\/a>), depositories (CDSL, <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nsdl\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>NSDL<\/a>), clearing corporations.<\/li>\n<li>Brokers, sub-brokers, depository participants, RTAs.<\/li>\n<li>Mutual funds, AMCs and asset management activities.<\/li>\n<li>Listed companies and their disclosures.<\/li>\n<li>FPIs, <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/portfolio\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">portfolio<\/a> managers, investment advisers and research analysts.<\/li>\n<li>Alternative investment funds (AIFs) and <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/reit\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>REIT<\/a>s\/<a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/invits\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">InvITs<\/a>.<\/li>\n<\/ul>\n<h2 id=\"major-sebi-reforms-over-the-years\">Major SEBI reforms over the years<\/h2>\n<table>\n<tr>\n<th>Year<\/th>\n<th>Reform<\/th>\n<\/tr>\n<tr>\n<td>1996<\/td>\n<td>Demat introduced<\/td>\n<\/tr>\n<tr>\n<td>2001<\/td>\n<td>Rolling settlement<\/td>\n<\/tr>\n<tr>\n<td>2003<\/td>\n<td>Risk-based margining (SPAN)<\/td>\n<\/tr>\n<tr>\n<td>2013<\/td>\n<td>SEBI Act amendments &#x2014; stronger enforcement powers<\/td>\n<\/tr>\n<tr>\n<td>2020&#x2013;21<\/td>\n<td><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/peak-margin-rules\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Peak margin rules<\/a>, <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/t1-settlement\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">T+1 settlement<\/a><\/td>\n<\/tr>\n<tr>\n<td>2024&#x2013;25<\/td>\n<td>T+0 pilot, DDPI standardisation, mutual fund nomination rules<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"how-sebi-protects-investors\">How SEBI protects investors<\/h2>\n<ul>\n<li>Mandatory KYC and disclosures across the value chain.<\/li>\n<li><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/insider-trading\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Insider trading<\/a> and unfair trade practice regulations.<\/li>\n<li>Investor education programs (SCORES, investor camps).<\/li>\n<li>Settlement guarantee through clearing corporations.<\/li>\n<li>Penalties for non-compliance &#x2014; monetary fines, debarment, criminal action.<\/li>\n<\/ul>\n<h2 id=\"filing-a-complaint-with-sebi\">Filing a complaint with SEBI<\/h2>\n<ol>\n<li>Visit the SCORES portal at scores.gov.in.<\/li>\n<li>Register with your PAN and basic details.<\/li>\n<li>File a complaint against the intermediary or company.<\/li>\n<li>SEBI forwards it to the relevant entity for resolution; you can escalate if unresolved.<\/li>\n<\/ol>\n<h2 id=\"sebi-s-impact-on-retail-traders\">SEBI&#x2019;s impact on retail traders<\/h2>\n<p>Many features Indian investors take for granted &#x2014; <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/demat-account\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">demat account<\/a>s, low brokerage caps, transparent <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/ipo-allotment\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">IPO allotment<\/a>, mandatory expense-ratio disclosures, investor protection funds &#x2014; exist because of SEBI rules. Following its circulars is therefore not just a compliance issue for brokers; it directly shapes the safety and quality of your <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/trading\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">trading<\/a> experience.<\/p>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"how-is-sebi-funded\">How is SEBI funded?<\/h3>\n<p>Through fees from intermediaries, levies on transactions, and registration charges.<\/p>\n<h3 id=\"who-oversees-sebi\">Who oversees SEBI?<\/h3>\n<p>It reports to the Ministry of Finance and is accountable to Parliament.<\/p>\n<h3 id=\"can-sebi-fine-intermediaries\">Can SEBI fine intermediaries?<\/h3>\n<p>Yes &#x2014; adjudicating officers and the SEBI board can impose substantial monetary penalties.<\/p>\n<h3 id=\"where-do-i-see-sebi-circulars\">Where do I see SEBI circulars?<\/h3>\n<p>On sebi.gov.in or via your broker. Lemonn&#x2019;s help center summarises major changes.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Securities and Exchange Board of India, or SEBI, is the statutory regulator of India&#x2019;s securities markets. Established in 1988 and given statutory powers by the SEBI Act of 1992, it oversees stock exchanges, brokers, mutual funds, depositories, listed companies, and virtually every market participant in India. Knowing what SEBI does &#x2014; and what protections [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12245","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"The Securities and Exchange Board of India, or SEBI, is the statutory regulator of India&#x2019;s securities markets. Established in 1988 and given statutory powers by the SEBI Act of 1992, it oversees stock exchanges, brokers, mutual funds, depositories, listed companies, and virtually every market participant in India. Knowing what SEBI does &#x2014; and what protections&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12245\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}