The Securities and Exchange Board of India (SEBI) is a statutory and autonomous regulatory institution for the securities and commodity market in India, functioning under the administrative domain of the Ministry of Finance. It was initially established as a non-statutory body on April 12, 1988. SEBI acquired its statutory authority on January 30, 1992, with the passing of the SEBI Act, 1992 by the Parliament. This move replaced the regulatory authority of the Controller of Capital Issues, which had operated under the repealed Capital Issues (Control) Act, 1947. SEBI was created to solve the problem of market irregularities, price manipulation, and investor exploitation that were common in the late 1980s.
The SEBI Act, 1992 establishes the Board under Section 3 and mandates it to protect the interests of investors, promote the development of the securities market, and regulate it. Its mechanism involves prohibiting fraudulent and unfair trade practices, including insider trading, and regulating substantial acquisition of shares. Section 11B of the Act empowers SEBI to issue directions to market intermediaries and disgorge amounts equivalent to wrongful gains. Appeals against SEBI's orders are heard by the Securities Appellate Tribunal (SAT), which is established under Chapter VIB of the Act.
Recently, the government has proposed the Securities Markets Code Bill, 2025, which aims to overhaul the securities law framework. This proposed legislation includes decriminalizing most securities law violations and expanding the maximum strength of the SEBI Board from nine to fifteen members. Furthermore, the SEBI (Issue of Capital and Disclosure Requirements) Amendment Regulations, 2026 were issued to enhance transparency and disclosure norms for companies accessing capital.