Methodology v1
SEBI
A
SEBI
Tier 2

Securities and Exchange Board of India

(SEBI)
Agovernment
India
Mumbai
Est. 1992
0 licensed entities
50,000 firms

Regulatory Snapshot

Enforcement4/5
Transparency4/5
Protection4/5
Complaints4/5
Strictness4/5
Overall4.0/5
Neg. Balance Protection
Segregated Accounts
Min. CapitalINR 50,000,000
Description

The Securities and Exchange Board of India is the regulatory body for securities and commodity markets in India, established under the SEBI Act of 1992. SEBI's primary functions include protecting the interests of investors, regulating the securities market, and promoting the development of India's capital markets.

Key Regulations
SEBI Act 1992Securities Contracts (Regulation) Act 1956SEBI (Stock Brokers) RegulationsFEMA Regulations (for forex)
Regulatory Scorecard
Enforcement Power4/5
Transparency4/5
Investor Protection4/5
Complaint Resolution4/5
Licensing Strictness4/5
Overall Average4.0/5
Detailed Overview

About SEBI

The Securities and Exchange Board of India (SEBI) was established as a statutory body on 12 April 1992 under the SEBI Act, 1992. SEBI's mandate encompasses the protection of investors' interests, the promotion of the development of the securities market, and the regulation of market activities. As India's capital markets have grown to become among the world's largest, SEBI's role has become increasingly significant.

Regulatory Framework

SEBI regulates stock exchanges, depositories, mutual funds, portfolio managers, investment advisers, and other market intermediaries. While SEBI does not directly supervise margin forex trading (which is restricted in India to exchange-traded currency derivatives), it plays a crucial role in the broader financial regulatory landscape and has been proactive in warning investors about unauthorised forex trading platforms.

Investor Protection

SEBI's SCORES (SEBI Complaints Redress System) provides a centralised platform for investors to lodge and track complaints against listed companies and market intermediaries. The Investor Protection Fund provides compensation for eligible claims, and SEBI conducts extensive investor education campaigns across India.

Investor Protection
  • Investor Protection Fund for compensation of eligible claims
  • SCORES complaint resolution platform for investor grievances
  • Mandatory registration for all market intermediaries
  • Comprehensive disclosure and governance requirements
Licensing Requirements
Minimum CapitalINR 50,000,000
Audit FrequencyAnnual
Reporting FrequencyQuarterly
License Timeframe6-12 months
Segregated Accounts
Negative Balance Protection
Professional Indemnity Insurance
Jurisdiction Coverage
Primary Jurisdiction: India

SEBI does not directly regulate margin forex trading. Forex derivatives restricted to exchange-traded only.

Dispute Resolution

Body: SEBI SCORES

Visit Dispute Resolution

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Licensing and registration requirements for market participants

Risk Disclaimer: Finmetrik provides data and analysis for informational purposes only. Scores and ratings do not constitute financial advice. Trading forex, CFDs, and proprietary trading involve substantial risk of loss. Past performance is not indicative of future results. Always conduct your own due diligence before opening an account with any broker or prop firm.