Securities and Exchange Board of India (SEBI)

Securities and Exchange Board of India (SEBI)

Context: To protect investors from increasing numbers of cyber frauds and market manipulators, the Securities and Exchange Board of India (SEBI) is planning to put in place a robust system in coordination with investigative agencies.

 Important Pointers: 

  • Established: April 12, 1988 (as a non-statutory body); became statutory in 1992 under the SEBI Act 

  •  Headquarters: Mumbai, Maharashtra 

  • Ministry: Under the Ministry of Finance 

  • Objective: To protect investors’ interests and regulate the securities market 

  • Powers: Quasi-legislative, quasi-executive, and quasi-judicial 

  • Major Functions: Regulates stock exchanges, mutual funds, brokers, and insider trading 

  • Chairperson Appointment: A chairperson nominated by the Union Government of India 

  • Recent Reform (2025): Standardization of derivatives expiry days to Tuesdays or Thursdays 

  • New Framework (2025): Introduced “Unaffected Price” rule to curb speculation before announcements 

  • Civil Court Powers: Can summon, inspect, and enforce compliance like a civil court 

  • Investor Education: Promotes financial literacy and investor awareness programs