This is part 1 of our SEBI regulations series. It covers the law that created SEBI, how SEBI is run, its powers and the appeal system. For the basics of markets and products, read our capital market basics first.
SEBI at a glance
Fact
Detail
Set up
12 April 1988 (non-statutory, by a government resolution)
Statutory body from
30 January 1992 (ordinance), under the SEBI Act, 1992
Preamble aims
Protect investors, develop and regulate the securities market
Headquarters
Mumbai (SEBI Bhavan, Bandra Kurla Complex)
Chairperson
Tuhin Kanta Pandey (11th, since 1 March 2025)
Merged with SEBI
Forward Markets Commission (FMC) in September 2015
Earlier regulator
Controller of Capital Issues (CCI) under the Capital Issues (Control) Act, 1947 (repealed 1992)
Composition of the SEBI Board (Section 4)
Member
Number
Chairman (appointed by the Central Government)
1
Officials of the Ministry of Finance (and Corporate Affairs)
2
Official of the RBI
1
Other members (at least 3 whole-time)
5
Total
9
Important sections of the SEBI Act
Section
Subject
3
Establishment of SEBI
4
Management of the Board
11
Functions of SEBI: regulate exchanges, intermediaries, mutual funds; prohibit fraud and insider trading; investor education
11A
Matters to be disclosed by companies
11B
Power to issue directions (including disgorgement)
11C
Investigation
12
Registration of intermediaries (brokers, merchant bankers, etc.)
12A
Prohibition of manipulative devices, insider trading and substantial acquisition
15A–15HB
Penalties (adjudication by an Adjudicating Officer)
15JB
Settlement of administrative and civil proceedings
15K
Establishment of the Securities Appellate Tribunal (SAT)
15T
Appeal to SAT (within 45 days)
15Z
Appeal to the Supreme Court (within 60 days) from SAT’s order
24
Offences: imprisonment up to 10 years and/or fine up to ₹25 crore
26
Cognizance of offences by a Special Court
Securities Appellate Tribunal (SAT)
Point
Detail
Set up
1995, under Section 15K
Location
Mumbai
Hears appeals against
SEBI, IRDAI and PFRDA orders
Presiding Officer
A sitting or retired Supreme Court judge or High Court Chief Justice (or judge, approx)