Editing Securities and Exchange Board of India

{{Short description|Regulatory body for securities in India}}
{{Use Indian English|date=July 2015}}
{{Use dmy dates|date=July 2015}}
{{Infobox government agency
| name            = Securities and Exchange Board of India
| type            = 
| seal            = Securities and Exchange Board of India.png
| seal_size       = 300px
| seal_caption    = Securities and Exchange Board of India
| seal_alt        = 
| logo            = 
| logo_size       = 150px
| logo_caption    = 
| logo_alt        = 
| image           = SEBI_Bhavan.jpg
| image_size      = 220px
| image_caption   = SEBI Bhavan, Mumbai
| image_alt       = 
| formed          = {{Start date and age|1988|04|12}} ({{small|Established}}) <br/> {{Start date and age|1992|01|30}} ({{small|Acquired Statutory Status}})<ref name="About SEI" />
| preceding       = 
| dissolved       = 
| superseding     = 
| agency_type     = [[Regulatory agency]]
| jurisdiction    = 
| status          = 
| headquarters    = [[Mumbai]], [[Maharashtra]]
| coordinates     = 
| motto           = 
| employees       = 867+ (2020)<ref name="sebi.gov.in">{{Cite web|url=https://www.sebi.gov.in/department/human-resources-department-37/employee-profile-in-sebi.html|title = SEBI &#124; Employee Profile in SEBI}}</ref>
| budget          = 
| chief1_name     = [[Tuhin Kanta Pandey]]
| chief1_position = [[Chairperson]] 
| term1_start     = [[1 March 2025]]
| term1_end        = 
| chief2_name     = 
| chief2_position = 
| parent_department = [[Ministry of Finance (India)|Ministry of Finance]], [[Government of India]]
| parent_agency   = 
| parent_agency_type = 
| child1_agency   = [[Forward Markets Commission]]
| child2_agency   = [[Association of Mutual Funds of India]]
| child3_agency   = [[National Securities Depository Limited]]
| child4_agency   = [[Central Depository Services Limited]]
| keydocument1    = Securities and Exchange Board of India Act, 1992<ref>{{cite act |index=15 |date=1992 |legislature=Parliament of India |title=Securities and Exchange Board of India Act, 1992 |page= |url=https://www.indiacode.nic.in/bitstream/123456789/1890/1/AA1992__15secu.pdf |language=en}}</ref>
| website         = {{URL|sebi.gov.in}}
| agency_id       = 
| map_caption     = 
| footnotes       = <ref>{{cite report |author=SEBI |date=28 June 2023 |title=Annual Report, 2022-23 |url=https://www.sebi.gov.in/reports-and-statistics/publications/aug-2023/annual-report-2022-23_74990.html |page= |access-date=6 January 2024}}</ref>
}}
{{Financial risk types}}
The  '''Securities and Exchange Board of India''' ('''SEBI''') is the [[Regulatory agency|regulatory body]] for [[securities]] and [[commodity market]] in [[India]] under the [[administrative domain]] of [[Ministry of Finance (India)|Ministry of Finance]] within the [[Government of India]]. It was established on 12 April 1988 as an executive body and was given [[Statutory body|statutory]] powers on 30 January 1992 through the [[Securities and Exchange Board of India Act, 1992|SEBI Act, 1992]].<ref name="About SEI">{{cite web|title=About SEBI|url=http://www.sebi.gov.in/sebiweb/stpages/about_sebi.jsp|publisher=SEBI|access-date=26 September 2012|archive-url=https://web.archive.org/web/20101003235606/http://www.sebi.gov.in/sebiweb/stpages/about_sebi.jsp|archive-date=3 October 2010}}</ref><ref>{{cite web |title=The Security and Exchange Board of India Act 1992 |url=https://www.sebi.gov.in/acts/act15ac.pdf |website=www.sebi.gov.in |publisher=SEBI |access-date=25 July 2022}}</ref>

== History ==
The Securities and Exchange Board of India (SEBI) was first established in 1988 as a non-statutory body for regulating the [[securities market]]. Before it came into existence, the Controller of Capital Issues was the market's regulatory authority, and derived power from the Capital Issues (Control) Act, 1947.<ref>{{cite act |index=29 |date=1947 |legislature=Parliament of India |title=The Capital Issues (Control) Act, 1947 |page= |url=https://www.sebi.gov.in/History/capitalissue.pdf |language=en}}</ref> SEBI became an autonomous body on 30 January 1992 and was accorded [[Statutory body|statutory]] powers with the passing of the SEBI Act, 1992 by the [[Parliament of India]].<ref>{{cite web |url=https://www.business-standard.com/about/what-is-sebi |title=What is SEBI? |date= |website=business-standard.com |publisher=Business Standard |access-date=6 January 2024}}</ref> It has its headquarters at the [[Central business district|business district]] of [[Bandra Kurla Complex]] in [[Mumbai]] and has Northern, Eastern, Southern and Western Regional Offices in [[New Delhi]], [[Kolkata]], [[Chennai]], and [[Ahmedabad]], respectively. Up until June 2023, it also had 17 local offices spread all over India to promote investor education; however, 16 of them were closed as part of a restructuring exercise.<ref>{{cite web |url=https://sebi.gov.in/sebi_data/meetingfiles/jun-2023/1687845757007_1.pdf |title=Expanding Investor Reach through Investors' Service Centres (ISCs) in association with Stock Exchanges and disengaging SEBI Local Offices in a phased manner |date=28 June 2023 |website=sebi.gov.in |publisher=SEBI |access-date=6 January 2024 |quote=The objective of this memorandum is to (i) update the Board on the setting up and operationalising of Investors' Service Centres (ISCs) by the two leading Stock Exchanges, viz., NSE and BSE out of their own resources/Investor Service Fund (ISF), in 50 different cities and towns of India with SEBI’s active association and participation in such ISCs and (ii) seek approval for phasing out 16 out of 17 Local Offices of SEBI in those cities. Four Regional Offices and one Local Office would continue to operate.}}</ref><ref>{{cite news |last=Zachariah |first=Reena |date=6 January 2024 |title=SEBI to close down 16 smaller offices |url=https://m.economictimes.com/markets/stocks/news/sebi-to-close-down-16-smaller-offices/articleshow/101321934.cms |work=Economic Times |location=New Delhi |access-date=6 January 2024}}</ref>

SEBI is managed by its board of members, which consist of the following people:
* The chairman, who is nominated by the [[Government of India|Union Government of India]].
* Two members from the [[Ministry of Finance (India)|Union Finance Ministry]].
* One member from the [[Reserve Bank of India]].
* The remaining five members are nominated by the Union Government of India, and out of them at least three should be whole-time members.

After the amendment of 1999, collective investment schemes were brought under SEBI except [[Nidhi company|nidhis]], chit funds and cooperatives.

== Organisation structure ==
[[File:Sebi Headquarter.jpg|thumb|SEBI headquarters, Mumbai]]
[[Tuhin Kanta Pandey]] took charge as [[Chairman]] on 1 March 2025, replacing [[Madhabi Puri Buch]], whose term ended on 28 February 2025.<ref>{{Cite news |title=After private sector experiment, finance secretary Tuhin Kanta Pandey named Sebi chief |url=https://timesofindia.indiatimes.com/business/india-business/after-private-sector-experiment-finance-secretary-tuhin-kanta-pandey-named-sebi-chief/articleshow/118611693.cms |access-date=2025-02-28 |work=The Times of India |issn=0971-8257}}</ref>

===Current [https://www.sebi.gov.in/orgchart.html Board members]===
The board comprises:<ref>{{cite web|url=https://www.sebi.gov.in/sebiweb/boardmember/BoardMemberAction.do?doBoardMember=yes|title=SEBI{{!}}Board Members |format=PDF |access-date=2012-02-28}}</ref><ref>{{cite web|url=https://www.sebi.gov.in/sebiweb/boardmember/BoardMemberAction.do?doBoardMember=yes |title=SEBI Board Members |access-date=2022-04-18}}</ref>
{| class="wikitable"
|-
! Name !! Designation
|-
| [[Tuhin Kanta Pandey]]|| Chairperson
|-
| Shri Ashwani Bhatia ||  Whole time member
|-
| Shri Ananth Narayan G ||  Whole time member 
|-
| Shri Amarjeet Singh || Whole time member
|-
|Shri Kamlesh Chandra Varshney
|Whole time member
|}

===List of Chairpersons===
List of Chairperson:<ref>{{cite web|url=https://www.sebi.gov.in/sebiweb/boardmember/BoardMemberAction.do?doFormerMember=yes|title=Former Chairmen of SEBI  |publisher=SEBI|access-date=19 February 2011}}</ref>
{| class="wikitable"
|-
! Name
! From
! To
|-
|Dr. S. A. Dave
|12 April 1988
|23 August 1990
|-
|G. V. Ramakrishna
|24 August 1990
|17 January 1994
|-
|S. S. Nadkarni
|17 January 1994
|31 January 1995
|-
|[[D. R. Mehta]]
|21 February 1995
|20 February 2002
|-
|G. N. Bajpai
|20 February 2002
|18 February 2005
|-
|[[M. Damodaran]]
|18 February 2005
|18 February 2008
|-
|[[C. B. Bhave]]
|18 February 2008
|18 February 2011
|-
|[[U. K. Sinha]]
|18 February 2011
|10 February 2017
|-
|Ajay Tyagi
|10 February 2017
|28 February 2022
|-
|[[Madhabi Puri Buch]]
|1 March 2022
|28 February 2025
|-
|[[Tuhin Kanta Pandey]]
|1 March 2025
|''[[Incumbent]]''
|}

==National Apex Bodies==

*[[National Institute of Securities Markets|National Institute of Securities Markets of India]]

== Functions and responsibilities ==
The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected there with or incidental there to".

SEBI has to be responsive to the needs of three groups, which constitute the market:
* issuers of securities
* investors
* market intermediaries

SEBI has three powers rolled into one body: [[quasi-legislative]], [[quasi-judicial]] and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeal process to create accountability. There is a Securities Appellate Tribunal which is a three-member tribunal and is currently headed by Justice [[Tarun Agarwala]], former Chief Justice of the [[Meghalaya High Court]].<ref>[https://wap.business-standard.com/article/pti-stories/justice-tarun-agarwala-appointed-securities-appellate-tribunal-presiding-officer-118121201035_1.html Justice Tarun Agarwala appointed Securities Appellate Tribunal presiding officer – Business Standard].
''Business Standard''. (2018-12-12). Retrieved 2019-03-24.</ref> A second appeal lies directly to the [[Supreme Court of India|Supreme Court]]. SEBI has taken a very proactive role in streamlining disclosure requirements to international standards.<ref>{{cite web|url=http://barandbench.com/content/212/cyril-shroff-managing-partner-mumbai-national-capital-market-head-amarchand|publisher=barandbench.com/|title=Cyril Shroff Managing Partner Mumbai & National Capital Market head Amarchand|date=14 June 2010 }}</ref> [[File:Securities and Exchange Board of India(SEBI).jpg|thumb|Securities and Exchange Board of India (SEBI)]]

=== Powers ===
For the discharge of its functions efficiently, SEBI has been vested with the following powers:
* to approve by−laws of Securities exchanges.
* to require the Securities exchange to amend their by−laws.
* inspect the books of accounts and call for periodical returns from recognised Securities exchanges.
* inspect the books of accounts of financial intermediaries.
* compel certain companies to list their shares in one or more Securities exchanges.
* registration of Brokers and sub-brokers.
* eliminate malpractices in security market.

'''SEBI committees'''

* Technical Advisory Committee
* Committee for review of structure of infrastructure institutions
* Advisory Committee for the SEBI Investor Protection and Education Fund
* Takeover Regulations Advisory Committee
* Primary Market Advisory Committee (PMAC)
* Secondary Market Advisory Committee (SMAC)
* Mutual Fund Advisory Committee
* Corporate Bonds & Securitisation Advisory Committee

There are two '''types''' of brokers:
*Discount brokers
*Merchant brokers

== Major achievements ==

SEBI has enjoyed success as a regulator by pushing systematic reforms aggressively and successively. It is credited for quick movement towards making the markets electronic and paperless by introducing the T+5 rolling cycle in July 2001, the T+3 in April 2002, and the [[T+2]] in April 2003. The rolling cycle of T+2 means that [[Settlement (finance)|settlement]] is done in 2 days after [[trade date]].<ref name="Discussion Paper Implementation of T+2 rolling settlement">{{cite web|title=Discussion Paper Implementation of T+2 rolling settlement|url=http://www.sebi.gov.in/commreport/t2.pdf|publisher=SEBI|access-date=25 October 2012}}</ref><ref name="Sebi gets rolling on T+2 settlement schedule">{{cite news|title=Sebi gets rolling on T+2 settlement schedule|url=http://articles.economictimes.indiatimes.com/2003-01-04/news/27546293_1_settlement-cycle-institutional-trades-t-5|archive-url=https://web.archive.org/web/20130617070247/http://articles.economictimes.indiatimes.com/2003-01-04/news/27546293_1_settlement-cycle-institutional-trades-t-5|url-status=dead|archive-date=17 June 2013|access-date=25 October 2012|newspaper=The Economic Times|date=4 January 2003}}</ref> SEBI has also been active in setting up the regulations as required under law. It did away with physical certificates that were prone to postal delays, theft and forgery, apart from making the settlement process slow and cumbersome, by passing the Depositories Act, 1996.<ref>[http://www.livemint.com/Industry/xer1j7wBRbQH1UTOBVrRaL/Sebis-25year-journey.html Sebi's 25-year journey]. Livemint (2013-05-21). Retrieved 2013-07-29.</ref><ref>{{cite web |url=https://www.indiacode.nic.in/bitstream/123456789/1955/1/A1996_22.pdf |title=The Depositories Act, 1996 |website=indiacode.nic.in |publisher=Ministry of Law and Justice, Government of India |access-date=14 December 2023}}</ref>

SEBI has also been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam fiasco.<ref>{{Cite web |last=Media |first=Indiaforensic |date=2014-07-22 |title=Satyam Investigation Report by SEBI |url=https://indiaforensic.com/satyam-investigation-report-by-sebi/ |access-date=2024-10-01 |website=Indiaforensic |language=en-US}}</ref> In October 2011, it increased the extent and quantity of disclosures to be made by Indian corporate promoters.<ref name="SEBI makes it mandatory for companies to disclose promoters' shares">{{cite news|title=SEBI makes it mandatory for companies to disclose promoters' shares|url=http://articles.economictimes.indiatimes.com/2011-10-06/news/30250534_1_promoters-pledge-disclosures|archive-url=https://web.archive.org/web/20111026143205/http://articles.economictimes.indiatimes.com/2011-10-06/news/30250534_1_promoters-pledge-disclosures|url-status=dead|archive-date=26 October 2011|access-date=26 October 2012|newspaper=The Economic Times|date=6 October 2011}}</ref> In light of the global meltdown, it liberalized the takeover code to facilitate investments by removing regulatory structures. In one such move, SEBI has increased the application limit for retail investors to {{INRConvert|200000}} from {{INRConvert|100000}} at present.<ref name="sebi">{{cite web|title=Sebi doubles retail limit, tightens IPO norms|url=http://business.rediff.com/report/2010/oct/26/sebi-tightens-ipo-norms.htm|work=Rediff.com|access-date=27 October 2010}}</ref>

On the occasion of World Investor Week 2022, SEBI Executive Director Shri G. P. Garg launched a book on Financial Literacy. This book is a joint effort between Metropolitan Stock Exchange of India Limited and CASI New York.<ref>{{cite web | url=https://mumbaitimes.online/book-launch-on-financial-literacy-pnn-digital/ | title=Book Launch on Financial Literacy – PNN Digital | date=17 October 2022 }}</ref><ref>{{cite web | url=https://livemumbai.in/index.php/2022/10/17/book-launch-on-financial-literacy/ | title=Book Launch on Financial Literacy – Live Mumbai }}</ref>

== Criticism and controversies ==

[[Supreme Court of India]] heard a [[Public Interest Litigation]] (PIL) filed by [[India Rejuvenation Initiative]] that had challenged the procedure for key appointments adopted by [[Govt of India]]. The petition alleged that, "The constitution of the search-cum-selection committee for recommending the name of chairman and every whole-time members of SEBI for appointment has been altered, which directly impacted its balance and could compromise the role of the SEBI as a watchdog."<ref name="Is Sebi's Autonomy Under Threat?">{{cite news | url=http://forbesindia.com/printcontent/30372 | title=Is Sebi's Autonomy Under Threat? | date=15 November 2011 | access-date=10 April 2012}}</ref><ref name="PIL alleges nexus in Sebi appointments">{{cite news | url=http://timesofindia.indiatimes.com/business/india-business/PIL-alleges-nexus-in-Sebi-appointments/articleshow/10612161.cms | title=PIL alleges nexus in Sebi appointments | date=5 November 2011 | access-date=10 April 2012}}</ref> On 21 November 2011, the court allowed petitioners to withdraw the petition and file a fresh petition pointing out constitutional issues regarding appointments of regulators and their independence. The [[Chief Justice of India]] refused the [[Ministry of Finance (India)|finance ministry's]] request to dismiss the [[Public Interest Litigation|PIL]] and said that the court was well aware of what was going on in SEBI.<ref name="Is Sebi's Autonomy Under Threat?" /><ref name="SC allows eminent citizens to withdraw petition against SEBI chief's appointment">{{cite news | url=http://www.moneylife.in/article/8/21576.html | title=SC allows eminent citizens to withdraw petition against SEBI chief's appointment | date=21 November 2011 | access-date=10 April 2012}}</ref> Hearing a similar petition filed by Bengaluru-based advocate Anil Kumar Agarwal, a two judge Supreme Court bench of Justice [[Surinder Singh Nijjar]] and Justice [[HL Gokhale]] issued a notice to the Govt of India, SEBI chief [[UK Sinha]] and Omita Paul, Secretary to the President of India.<ref name="Notice to Centre on quo warranto against SEBI chief">{{cite news|title=Notice to Centre on quo warranto against SEBI chief|url=http://www.thehindu.com/news/national/sebi-chief-appointment-under-sc-scrutiny/article3938457.ece|access-date=26 September 2012|newspaper=The Hindu|date=26 September 2012}}</ref><ref name="SC seeks Centre's reply on PIL on Sebi chairman's appointment">{{cite news|title=SC seeks Centre's reply on PIL on Sebi chairman's appointment|url=http://www.deccanherald.com/content/281208/sc-seeks-centres-reply-pil.html|access-date=26 September 2012|newspaper=Deccan Herald|date=26 September 2012}}</ref>

Further, it came into light that [[Kandathil Mathew Abraham|Dr. K. M. Abraham]](the then whole time member of SEBI Board) had written to the [[Prime Minister of India|Prime Minister]] about malaise in SEBI. He said, "The regulatory institution is under duress and under severe attack from powerful corporate interests operating concertedly to undermine SEBI". He specifically said that Finance Minister's office, and especially his advisor Omita Paul, were trying to influence many cases before SEBI, including those relating to Sahara Group, Reliance, Bank of Rajasthan and MCX.<ref name="KM Abraham's letter to PM">{{cite web | url=https://www.scribd.com/firstpost/d/70646038-K-M-Abraham-s-Letter-to-PM | title=KM Abraham's letter to PM | publisher=Prime Minister's Office | date=20 October 2011 | access-date=11 April 2012}}</ref><ref name="Pranab-Chidu feud may be revived over Sebi chief PIL">{{cite news | url=http://www.firstpost.com/business/pranab-chidu-feud-may-be-revived-over-sebi-chief-pil-129459.html | title=Pranab-Chidu feud may be revived over Sebi chief PIL | date=12 November 2011 | access-date=11 April 2012}}</ref><ref>{{Cite web |date=2024-10-01 |title=Upcoming IPO 2024 in India This Week - Track IPO {{!}} GMP {{!}} Status {{!}} Reviews |url=https://trackipo.in/upcoming-ipo/ |access-date=2024-10-01 |language=en-US}}</ref>

===Regulatory failure, inaction, and incompetence===
Several major financial scams have shaken the Indian market, like the [[Satyam scam]], [[IL&FS]] crisis, [[Punjab National Bank Scam]], and [[NSE co-location scam]] Critics argue that SEBI failed to properly monitor these companies or take timely action when irregularities were noticed.<ref>Singh, V.K. (2021). Corporate Governance Failures as a Cause of Increasing Corporate Frauds in India—An Analysis. In: Kaur, H. (eds) Facets of Corporate Governance and Corporate Social Responsibility in India. Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application. Springer, Singapore. {{doi|10.1007/978-981-33-4076-3_2}}</ref><ref name="sebi_toi">{{cite news | url=https://timesofindia.indiatimes.com/blogs/myview/has-sebi-completely-failed-in-regulating-the-capital-market-in-india/?source=app&frmapp=yes | title=Has SEBI completely failed in regulating the capital market in India? | newspaper=The Times of India | last1=Gupta | first1=Rajeev }}</ref> There have been instances where market intermediaries engaged in fraudulent activities, which resulted in significant losses for investors.<ref name="sebi_toi"/><ref>Sabarinathan, G. (2010). SEBI’s Regulation of the Indian Securities Market: A Critical Review of the Major Developments. Vikalpa, 35(4), 13-26. {{doi|10.1177/0256090920100402}}</ref> SEBI’s monitoring of these intermediaries has been called into question. SEBI has been criticized for its inability to effectively regulate and prevent insider trading, despite having regulations in place. There have been numerous cases where [[insider trading]] went undetected for long periods.<ref name="sebi_toi"/> Some believe SEBI hasn't done enough to prevent companies from issuing IPOs ([[Initial Public Offerings]]) at inflated prices, which hurts regular investors.<ref>{{cite news | url=https://timesofindia.indiatimes.com/business/india-business/ipos-thrive-despite-election-season-companies-plan-to-raise-over-rs-10000-crore-in-may/articleshow/109781118.cms | title=IPOs thrive despite election season: Companies plan to raise over Rs 10,000 crore in May | newspaper=The Times of India | date=2 May 2024 }}</ref><ref>{{cite news | url=https://timesofindia.indiatimes.com/business/india-business/ipo-count-rises-in-2023-but-amount-lags/articleshow/106255946.cms | title=IPO count rises in 2023, but amount lags | newspaper=The Times of India | date=25 December 2023 }}</ref>

[[Market manipulation]] is an ongoing concern in the Indian stock market, particularly with small-cap and mid-cap stocks, which are more susceptible due to lower trading volumes, less liquidity, and limited market analyst coverage. [[Pump and dump]] schemes are a prevalent form of manipulation, where false or misleading statements are used to inflate a stock’s price before the manipulators sell off their shares at a profit, leading to significant losses for unsuspecting investors.<ref>Uppal, Jamshed Y., and Inayat U. Mangla. “Market Volatility, Manipulation, and Regulatory Response: A Comparative Study of Bombay and Karachi Stock Markets.” The Pakistan Development Review, vol. 45, no. 4, 2006, pp. 1071–83. {{JSTOR|41260669}}. Accessed 30 May 2024.</ref><ref>Goel, A., Tripathi, V. and Agarwal, M. (2021), "Market microstructure: a comparative study of Bombay stock exchange and national stock exchange", Journal of Advances in Management Research, Vol. 18 No. 3, pp. 414-442. {{doi|10.1108/JAMR-06-2020-0109}}</ref><ref>https://www.researchgate.net/profile/Chakrapani-Chaturvedula/publication/311446941_The_Effectiveness_of_Trade_for_Trade_Segment_as_a_Surveillance_Effort_to_Prevent_Price_Manipulation_Evidence_from_India/links/58f7a2094585158d8a6c176e/The-Effectiveness-of-Trade-for-Trade-Segment-as-a-Surveillance-Effort-to-Prevent-Price-Manipulation-Evidence-from-India.pdf</ref>

The Securities and Exchange Board of India (SEBI) has been criticized for not being able to prevent such manipulations effectively. Reasons include limited resources, reliance on stock exchanges for market data, a lack of a comprehensive legal framework with stringent penalties, slow response times, and a lack of coordination with other regulatory bodies.<ref>Bose, Suchismita, Securities Market Regulations: Lessons from US and Indian Experience (2005). The ICRA Bulletin, Money & Finance, Vol. 2, No. 20-21, Jan-Jun 2005, Available at {{SSRN|1140107}}</ref><ref>Agarwalla, Sobhesh Kumar and Jacob, Joshy and Varma, Jayanth Rama, High Frequency Manipulation at Futures Expiry: The Case of Cash Settled Indian Single Stock Futures (February 10, 2014). Indian Institute of Management, Ahmedabad, India Working Paper No. 2014-02-01, Available at {{SSRN|2395159}} or {{doi|10.2139/ssrn.2395159}}</ref>

=== Hindenburg allegations ===
In August 2024, [[Hindenburg Research]], a [[Short (finance)|short-selling]] activist firm, accused SEBI Chief [[Madhabi Puri Buch]] and her husband of having a stake in offshore entities which invested money into India. They alleged that these same funds, managed by [[IIFL Wealth]], were used by [[Vinod Adani]] to [[Adani Group#Stock manipulation and accounting fraud allegations|artificially inflate shares]] of companies owned by the [[Adani Group]].<ref name="hind">{{Cite web |date=2024-08-10 |title=Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Siphoning Scandal |url=https://hindenburgresearch.com/sebi-chairperson/ |url-status=live |archive-url=https://web.archive.org/web/20240810163305/https://hindenburgresearch.com/sebi-chairperson/ |archive-date=2024-08-10 |access-date=2024-08-10 |website=[[Hindenburg Research]] |language=en-US}}</ref> This put Buch into the spotlight, since SEBI had previously faced difficulties in finding out the [[Beneficial ownership|beneficial owners]] of similar [[Offshore company|off-shore funds]] that had invested in Adani companies.<ref name="Andy_M_Bloomberg">{{cite web |last=Mukherjee |first=Andy |date=12 August 2024 |title=Hindenburg Steps Up for Adani Round Two. With SEBI |url=https://www.bloomberg.com/opinion/articles/2024-08-12/hindenburg-s-latest-adani-report-is-great-political-fodder?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTcyMzQyNDgzMCwiZXhwIjoxNzI0MDI5NjMwLCJhcnRpY2xlSWQiOiJTSTJZU0JUMEFGQjUwMCIsImJjb25uZWN0SWQiOiI3MEFDQzU0Q0Y5NjE0OENEOTFBOTlFMjBGNkQ4N0ZDRiJ9.6PP221PwPlyuMTzFMecvdQbjSttz9zYeu3OQ9n4gkgo |url-status=live |archive-url=https://web.archive.org/web/20240813202253/https://www.bloomberg.com/opinion/articles/2024-08-12/hindenburg-s-latest-adani-report-is-great-political-fodder?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTcyMzQyNDgzMCwiZXhwIjoxNzI0MDI5NjMwLCJhcnRpY2xlSWQiOiJTSTJZU0JUMEFGQjUwMCIsImJjb25uZWN0SWQiOiI3MEFDQzU0Q0Y5NjE0OENEOTFBOTlFMjBGNkQ4N0ZDRiJ9.6PP221PwPlyuMTzFMecvdQbjSttz9zYeu3OQ9n4gkgo |archive-date=13 August 2024 |accessdate=12 August 2024 |website=bloomberg.com |publisher=[[Bloomberg News|Bloomberg]]}}</ref><ref>{{cite web |date=15 July 2024 |title=SC rejects plea to review its January verdict upholding SEBI probe into Adani-Hindenburg case |url=https://www.thehindu.com/news/national/sc-rejects-plea-to-review-its-january-verdict-upholding-sebi-probe-into-adani-hindenburg-case/article68407295.ece |url-status=live |archive-url=https://web.archive.org/web/20240813202254/https://www.thehindu.com/news/national/sc-rejects-plea-to-review-its-january-verdict-upholding-sebi-probe-into-adani-hindenburg-case/article68407295.ece |archive-date=13 August 2024 |accessdate=12 August 2024 |website=thehindu.com |publisher=The Hindu}}</ref><ref>{{cite web |last=Dr Dhananjaya Y Chandrachud, Chief Justice of India |date=2024-01-03 |title=Judgement in Vishal Tiwari vs Union of India & Ors. |url=https://main.sci.gov.in/supremecourt/2023/5354/5354_2023_1_1501_49132_Judgement_03-Jan-2024.pdf |url-status=live |archive-url=https://web.archive.org/web/20240417190328/https://main.sci.gov.in/supremecourt/2023/5354/5354_2023_1_1501_49132_Judgement_03-Jan-2024.pdf |archive-date=2024-04-17 |accessdate=2024-08-12 |website=[[Supreme Court of India]] |publisher=}}</ref> Adani Group calls the claims "malicious, mischievous".<ref>{{Cite news |last= |date=2024-08-10 |title=SEBI chief Madhabi Buch, husband deny Hindenburg charge as ‘baseless’; Adani Group says allegations ‘malicious, mischievous’ |url=https://www.thehindu.com/news/national/sebi-chief-madhabi-buch-husband-deny-hindenburg-allegations-as-baseless/article68510890.ece |access-date=2024-08-14 |work=[[The Hindu]] |language=en-IN |issn=0971-751X}}</ref> India's [[Leader of the Opposition in Lok Sabha|Leader of the Opposition in the Lok Sabha]], [[Rahul Gandhi]], asked Buch to resign.<ref>{{cite news |date=11 August 2024 |title=’If investors lose their…’: Rahul Gandhi targets SEBI’s Madhabi Puri Buch, PM Modi and Adani over Hindenburg allegations |url=https://www.livemint.com/market/stock-market-news/why-hasn-t-sebi-chairperson-madhabi-puri-buch-resigned-asks-rahul-gandhi-amid-hindenburg-adani-case-gautam-adani-modi-11723386070233.html |url-status=live |archive-url=https://web.archive.org/web/20240811153550/https://www.livemint.com/market/stock-market-news/why-hasn-t-sebi-chairperson-madhabi-puri-buch-resigned-asks-rahul-gandhi-amid-hindenburg-adani-case-gautam-adani-modi-11723386070233.html |archive-date=2024-08-11 |accessdate=2024-08-11 |website=[[Mint (newspaper)|Mint]] |publisher=Livemint}}</ref><ref>{{cite news |date=11 August 2024 |title=Rahul Gandhi warns of stock market risk after new Hindenburg report on SEBI chief: ‘Umpire is compromised’ |url=https://www.hindustantimes.com/india-news/rahul-gandhi-warns-of-stock-market-risk-after-new-hindenburg-report-umpire-is-compromised-101723387115466.html |url-status=live |archive-url=https://web.archive.org/web/20240813202258/https://www.hindustantimes.com/india-news/rahul-gandhi-warns-of-stock-market-risk-after-new-hindenburg-report-umpire-is-compromised-101723387115466.html |archive-date=13 August 2024 |accessdate=11 August 2024 |website=[[The Hindustan Times]] |publisher=}}</ref>

Commentators say that while Hindenburg Research did not have compelling evidence of malfeasance, Puri Buch didn't do enough to avoid entirely foreseeable conflict of interest allegations.<ref>{{cite web |title=Shouldn't SEBI Officials Be Subject to the Same Standards of Probity and Compliance It Demands from Market Participants? |url=https://www.moneylife.in/article/exclusive-shouldnt-sebi-officials-be-subject-to-the-same-standards-of-probity-and-compliance-it-demands-from-market-participants/74896.html |website=Moneylife |access-date=24 August 2024}}</ref>

== Regional Securities exchanges ==
SEBI in its circular dated 30 May 2012 gave exit – guidelines for Securities exchanges. This was mainly due to illiquid nature of trade on many of 20+ regional Securities exchanges. It had asked many of these exchanges to either meet the required criteria or take a graceful exit. SEBI's new norms for Securities exchanges mandates that it should have minimum net-worth of {{INR}} 1&nbsp;billion and an annual trading of {{INR}} 10&nbsp;billion. The Indian Securities market regulator SEBI had given the recognized Securities exchanges two years to comply or exit the business.<ref>{{Cite news|url=http://www.livemint.com/Money/foV0xOfxkv4GSJjQ5z1PUL/15-regional-Securities-exchanges-to-shut-operations-as-Sebi-deadl.html|title=15 regional Securities exchanges to shut operations as Sebi deadline approaches|last=Rukhaiyar|first=Ashish|date=2014-05-20|work=livemint.com/|access-date=2017-05-15}}</ref>

SEBI is cracking down on virtual stock gaming apps popular among retail investors for creating virtual portfolios and competing on real-time stock prices.<ref>{{Cite news |title="SEBI is banning apps that offer these virtual trading services" |url=https://timesofindia.indiatimes.com/technology/tech-news/sebi-is-banning-apps-that-offer-these-virtual-trading-services/articleshow/110476097.cms}}</ref>

In May, 2024 Sebi started to allow Foreign Portfolio Investors (FPIs) established in GIFT City to accept unlimited investments from Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). After this initiative, NRIs could own100% of a global fund set up at GIFT city which is a special economic zone in Gujrat.<ref>{{Cite web |last=Standard |first=Business |title=Explained: How Sebi just made it easier for NRIs to invest in Indian market |url=https://www.business-standard.com/finance/personal-finance/explained-how-sebi-just-made-it-easier-for-nris-to-invest-in-indian-market-124050100114_1.html |archive-url=http://web.archive.org/web/20240502172119/https://www.business-standard.com/finance/personal-finance/explained-how-sebi-just-made-it-easier-for-nris-to-invest-in-indian-market-124050100114_1.html |archive-date=2024-05-02 |access-date=2024-12-13 |website=www.business-standard.com |language=en-US}}</ref>

=== Process of de-recognition and exit ===
Following is an excerpt from the circular:<ref>{{Cite news |title=SEBI Regulations on Stock Market Exchange: A Historical Perspective |url=https://ipocentral.in/sebi-regulations-on-stock-market-exchange/}}</ref>

# Exchanges may seek exit through voluntary surrender of recognition.
# Securities where the annual trading turnover on its own platform is less than {{INR}} 10&nbsp;billion can apply to SEBI for voluntary surrender of recognition and exit, at any time before the expiry of two years from the date of issuance of this Circular.
# If the Securities exchange is not able to achieve the prescribed turnover of {{INR}} 10&nbsp;billion on continuous basis or does not apply for voluntary surrender of recognition and exit before the expiry of two years from the date of this Circular, SEBI shall proceed with compulsory de-recognition and exit of such Securities exchanges, in terms of the conditions as may be specified by SEBI.
# Securities Exchanges which are already de-recognised as on date, shall make an application for exit within two months from the date of this circular. Upon failure to do so, the de-recognised exchange shall be subject to compulsory exit process.

== Departments ==
SEBI regulates Indian financial market through its 20 departments.<ref>{{Cite web|url=https://fundsbase.com/sebi-departments/|title=SEBI Departments|date=7 February 2018}}</ref>
{| role="presentation" class="wikitable mw-collapsible mw-collapsed"
| <strong>SEBI Departments</strong>
|-
|
* Commodity Derivatives Market Regulation Department (CDMRD)
* Corporation Finance Department (CFD)
* Department of Economic and Policy Analysis (DEPA)
* Department of Debt and Hybrid Securities (DDHS)
* Enforcement Department – 1 (EFD1)
* Enforcement Department – 2 (EFD2)
* Enquiries and Adjudication Department (EAD)
* General Services Department (GSD)
* Human Resources Department (HRD)
* Information Technology Department (ITD)
* Integrated Surveillance Department (ISD)
* Investigations Department (IVD)
* Investment Management Department (IMD)
* Legal Affairs Department (LAD)
* Market Intermediaries Regulation and Supervision Department (MIRSD)
* Market Regulation Department (MRD)
* Office of International Affairs (OIA)
* Office of Investor Assistance and Education (OIAE)
* Office of the chairman (OCH)
* Regional offices (ROs)
|}
'''SEBI about Opinion Trading'''

SEBI does not regulate opinion trading platforms. Sebi had said that ‘opinion trading’ platforms use the terminology and structures taken from regulated markets, including terms such as ‘profits’, ‘stop loss’, and ‘trading’. These phrases make opinion trading platforms seem like they are similar to regular trading platforms allowing trade in stocks, bonds, and other financial securities. Sebi does not regulate these platforms and they operate in a legal grey area. 

== See also ==
{{div col|colwidth=30em}}
* [[2008 financial crisis]]
* [[U.S. Securities and Exchange Commission]] 
* [[Commodity Futures Trading Commission]]
* [[Financial Conduct Authority]]
* [[Federal Financial Supervisory Authority]] 
* [[1992 Indian stock market scam]]
* [[Ketan Parekh]]  
* [[Accounting scandals]] 
* [[Dot-com bubble]]
* [[Financial regulation]]
* [[Financial risk management]] 
* [[Forward Markets Commission]]
* [[Insider trading]] 
* [[Institute of Chartered Accountants of India]]
* [[Institute of Company Secretaries of India]]
* [[List of financial regulatory authorities by jurisdiction]]
* [[List of stock exchanges in the Commonwealth of Nations]]
* [[Market manipulation]] 
* [[Regulation D (SEC)]]
* [[Risk management]] 
* [[Satyam scandal]]
* [[Securities commission]]
* [[Securities exchange]]
{{div col end}}

== References ==
{{Reflist}}

== External links ==
{{Commons category|Securities and Exchange Board of India}}
* [https://www.sebi.gov.in/ Securities and Exchange Board of India]
* [https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=1&ssid=7&smid=0 SEBI Latest Circulars]
* [https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=4&ssid=80&smid=101 SEBI Annual Reports]

{{Financial services in India}}
{{Authority control}}

[[Category:Securities and Exchange Board of India| ]]
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[[Category:Regulatory agencies of India]]
[[Category:Organisations based in Mumbai]]
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[[Category:Government agencies established in 1992]]
[[Category:Government agencies of India]]
[[Category:Economic history of India (1947–present)]]
[[Category:Financial services companies based in Mumbai]]
[[Category:1988 establishments in Maharashtra]]