SEBI - Securities and Exchange Board of India

The moment I started investing in the stock market, the name SEBI was constantly mentioned. The very first broker, the very first mutual fund document, and every single news article relating to market regulations all pointed to it (SEBI established).

To be honest, though, I never quite got the picture as to what exactly SEBI was about (the role of SEBI and the powers of SEBI), and most of all, why it was so crucial and what value it was adding to a person like me who just wanted to make his savings grow.

If you have ever been through this kind of confusion, then you are at the right spot. In this guide, I will make everything about SEBI known to you, to each and every one of the beginner-friendly languages.

By the time we are done, you will not only know what SEBI is, but also its importance for your investments, and how it keeps your hard-earned money safe as well.

What is SEBI?

SEBI's full form is the Securities and Exchange Board of India.  Imagine it as a referee at a cricket match who ensures that all players are playing fair, following the regulations, and no one is cheating. 

In the financial sector, SEBI keeps an eye on the stock exchanges, mutual funds, and the entire spectrum of participants and companies that deal in securities trading.

The easiest and clearest way to put it to my friends is that SEBI is the body that secures your funds in stock or mutual fund investments, and at the same time, it monitors the market, preventing malpractices from happening.

Why SEBI Was Established

Before SEBI came into the picture, the Indian stock markets were quite confusing. There were scams, manipulation, and investors often got cheated because there was no strong authority keeping watch. The most famous example was the Harshad Mehta scam in 1992, which shook the entire country and showed how desperately we needed a proper regulator.

SEBI was established to bring order to this confusion. Its main job is to protect investors like you and me, develop the securities market, and regulate how it functions. Without SEBI, investing in India would be much riskier and less trustworthy.

SEBI Headquarters and Regional Offices

The SEBI main office is in the Bandra Kurla Complex, located in Mumbai, Maharashtra. It is a logical choice since Mumbai is the financial center of India. 

But SEBI is not limited to one location only. It has regional offices in the country's major cities, New Delhi, Kolkata, Chennai, and Ahmedabad. This way, it keeps track of the market activities throughout India.

History and Evolution of SEBI

Before the establishment of the Securities and Exchange Board of India (SEBI), the Controller of Capital Issues (CCI) regulated the issuance of shares and the pricing of newly issued shares under the Capital Issues (Control) Act of 1947. However, as the markets developed and matured, it became apparent that there was a need for an even more powerful, independent regulator of the capital markets.

Formation as Non-Statutory Body (1988)

In 1988, SEBI was formed as a non-statutory body without legal powers to enforce its rules or impose penalties on violators. However, with the passage of the SEBI Act of 1992, SEBI was granted the ability to register market participants, conduct investigations, and impose punishments for violations of the Act. These developments were a major milestone in the evolution of the Indian capital market and a significant step forward for SEBI.

The SEBI Act 1992 essentially transformed SEB, which failed to enforce rules properly, into a powerful regulator with real authority.

Key Milestones and Reforms

Over the year, SEBI has created major reforms that help to improve market transparency, investor protection, and enhance regulatory efficiency.  

• The Collective Investment Schemes Amendment of 1999 The regulation of collective investment schemes was added to SEBI's authority in 1999. This assisted in stopping dishonest investment schemes that were tricking unsuspecting investors.

• Initiatives for Digital Transformation One of the best things SEBI has done, in my opinion, is to embrace technology. Online trading, dematerialization of shares (no more paper certificates!), and digital complaint filing have all been implemented. For ordinary people like us, these modifications have greatly simplified investing.

• Current Shifts in Leadership (2025) A key factor in determining SEBI policies is its leadership. As of 2025, the company is still changing as new leadership offers new insights into how to address new market challenges.

SEBI Act 1992- Summary of Major Components

SEBI Act 1992, which was legally enhanced to regulate of securities market. It gives SEBI of power to register and regulate intermediaries and take actions against market manipulation or fraud. 

Goals of the SEBI Act 1992 and Purpose Statement

According to the SEBI Act 1992, The Purpose of SEBI is to Protect the Interests of Investors in Securities. Additionally, the preamble of the act outlines the statutory functions of SEBI, including promoting the development of the securities market, regulating the securities market, and presenting all essential documents; basically, these are core SEBI functions and objectives.  

Major Components of the SEBI Act 1992

The SEBI Act comprises several sections; each section outlines different components of SEBI, including its Organization and Powers, the Registration Process for the Market Intermediaries, the Power to Demand Penalties, and Penalties for any violations. The SEBI Act has been amended many times since it was first enacted, primarily due to the changing dynamics of the Market.

• Requirement for Registration The SEBI Act requires that, to be able to operate in the Securities Market (i.e, brokers, mutual fund companies, portfolio managers, etc.), you must register with SEBI. This is crucial in order that only reputable and reputable entities handle your investments safely.

• Penalties for Violation of Regulations Implemented by the SEBI Act The SEBI Act clearly establishes penalties for violations of its regulations. SEBI has the authority to impose large fines on firms that violate regulations on insider trading and market manipulation, as well as to pursue criminal prosecution against the individuals involved. This helps keep all parties in the respective markets in compliance with the provisions of the SEBI Act.

Structure and Organization of SEBI

• Composition of SEBI Board: SEBI is governed by a Board with diverse membership to create a balanced decision-making process for SEBI.

• Chairman: The Chairman of SEBI is the head of the board and is appointed by the Government of India. The Chairman is responsible for the overall direction of SEBI.

• Members from the Finance Ministry: There are several members of SEBI who have been appointed by the Ministry of Finance, allowing SEBI to understand the government's perspective when making decisions.

• RBI Representative:
  Additionally, the Reserve Bank of India has a representative serving on the SEBI board. This is important since monetary policy and the regulation of securities are closely tied together.

• Independent Members: Furthermore, SEBI has independent members on the board who provide expertise from different sectors. This will help prevent a single sector from having a large influence on the decisions made by SEBI.

• Current Leadership (2025):  SEBI currently functions under a strong leadership team that has a clear focus on developing markets, while still protecting investors.

• Organizational Hierarchy: In addition to the board, SEBI is organised into departments for various functions, including market regulation, enforcement, and investor protection, as well as the legal affairs department. By establishing these departments to handle SEBI various responsibilities, SEBI can effectively fulfill the enormous role of overseeing India of capital markets.

Functions and Roles of SEBI

I was taken aback by how much SEBI actually does when I first learned about its operations. I will divide it into three primary groups.

1. Protective Functions

• Investor Protection Measures: This is the most significant duty of SEBI. The regulators set the bar by establishing the conditions under which companies and organizations need to disclose every piece of information that might affect the investors decisions, leading to informed choices. They also examine the market and attempt to identify activities that could potentially harm investors.

• Prevention of Insider Trading:

Insider trading happens when a person makes a profit in the stock market by using insider secrets. SEBI regulations against this are very rigorous, and the agency is very proactive in monitoring trading patterns to identify violators.

Understanding insider trading definition, examples, and SEBI regulations helps investors recognize prohibited activities and stay compliant with market laws.

SEBI has a strict watch on the market for fraud and manipulation. They act as soon as they spot something wrong by launching an inquiry and taking measures. The protective function of SEBI is what makes us investors feel safe to place our investments in the market.

• Fraud Detection and Prevention: SEBI has a strict watch on the market for fraud and manipulation. They act as soon as they spot something wrong by launching an inquiry and taking measures. The protective function of SEBI is what makes us investors feel safe to place our investments in the market.

2. Functions of the Regulatory Body

• Market Intermediaries Registration: SEBI registers all the market intermediaries, as I already said, brokers, sub-brokers, portfolio managers, investment advisors, etc. This registration procedure guarantees that these entities conform to specific criteria.

• Exchanges Regulation: SEBI also oversees the operations of stock exchanges such as NSE and BSE. The agency prescribes the rules of the game for these exchanges and thus keeps the trading very fair and transparent with the help of proper regulations of the stock exchange mechanisms.

• Supervision and Detection: SEBI is not a rule maker that just leaves after making the rules. The board has a very sophisticated surveillance system, which is always on and can detect any unusual trading activities or possible manipulation through such monitoring.

• Code of Conduct Implementation: A code of conduct laid down by SEBI has to be complied with by all the market participants. It includes everything from the manner of interaction between brokers and clients to the disclosure of information by companies.

3. Development Functions

• Market Infrastructure Development: The Securities and Exchange Board of India (SEBI) is constantly working towards the betterment of the market infrastructure. More specifically, it will consist of the introduction of electronic trading, the encouragement of wider participation in the market, and the smoothing of the process of making markets more accessible to ordinary investors.

• Investor Education Programs: Among the several things that I appreciate about SEBI is its persistence in educating the investors. The commission operates many different programs that are designed not only to make the public aware of the investment process but also to make them understand it much better. The more knowledge investors have, the more the market will thrive.

• Technology Adoption (DEMAT, Online Trading): The introduction of disappeared shares (DEMAT) was a major transformation in the world of securities trading. Before that, people had to deal with physical share certificates that could easily be lost or forged. In contrast, today, everything is digital, safe, and easy to access.

• Discount Brokerage Promotion With the creation of a regulatory framework that permitted discount brokers to operate, SEBI not only facilitated small investors to trade but also made the whole process financially easier for them. The reality is that lower brokerage fees mean more people can be part of the market.

Powers and Authority of SEBI

• Quasi-Judicial Powers: SEBI has the power that the law also has. It can, therefore, hold hearings and pass orders like a court would. In case of a violation of securities laws, SEBI can investigate, hold proceedings, and impose penalties this all happens without going through regular courts for every case.

• Quasi-Legislative Powers: A set of rules and regulations for the securities market is formed by SEBI. The main laws are passed by Parliament, while SEBI creates the detailed regulations under those laws. This flexibility allows SEBI to be the quick one in the response to market irregularities.

• Quasi-Executive Powers: Besides, SEBI can perform executive action. The agency can do inspections, request information, and take immediate actions, for example, the ones to prevent market manipulation or protect investors.

• Enforcement and Investigation Authority: On the other hand, if SEBI has any suspicion that it is doing the wrong thing, it can investigate the situation. The officials may call persons for questioning, inspect papers, and gather proof. This authority of the enforcement is managed to ensure market integrity.

• Securities Appellate Tribunal (SAT): In case the ruling of SEBI is not liked by someone, the individual can apply to the Securities Appellate Tribunal. This serves as a check on SEBI's authority and ensures just treatment for all.

SEBI and Mutual Fund Regulations

1. Regulators of mutual funds in India?

It is a question that is frequently asked of me by friends who have intentions to invest in mutual funds. The response to this is easy: SEBI regulates mutual funds in India. Any mutual fund company should be registered with SEBI and adhere to its rules. Who then regulates mutual funds in India? It is SEBI by way of extensive SEBI guidelines.

Three-Tier Structure Sponsor-Trustee-AMC

To provide checks and balances, SEBI has developed a three-tier model of mutual funds. There is the sponsor (who is normally a bank or financial institution), the trustee (who supervises the work as an agent of the investors), and the Asset Management Company or AMC (who actually runs the money). This is such that no particular body can have absolute power, and your investments are safe.

2. SEBI (Mutual Funds) Regulations, 1996

The primary legislation that regulates mutual funds in India is the SEBI (Mutual Funds) Regulations, 1996. It deals with the manner in which the mutual funds should be established to the manner in which they should conduct their operations, and report to the investors.

Relevant Provisions and Current Amendments (March 2025)

These laws are revised on a regular basis. In March 2025, it was revised again, which gave more emphasis on transparency and secured the interest of investors further.

Scheme Categorization

Categorization of mutual fund schemes is one of the most convenient things that SEBI has done. This makes it so easy for investors to know what they are making investments in.

• Equity Funds: These are stocks mostly invested in. SEBI also classifies them into market capitalization of large-cap, mid-cap, small-cap, and multi-cap funds.

• Debt Funds: they invest in bonds and other security of fixedsecuritiese. These are liquid funds, gilt funds, and credit risk funds, among others.

• Hybrid Funds: These are funds that invest in stocks and bonds and provide a balanced variation.

• Solution-Oriented Schemes: Solution-oriented schemes have an ultimate objective, such as retirement or the education of children, and they are bound by a mandatory lock-in.

• Others (Index, ETF, Sectoral): These are index funds, Exchange Traded Funds, and sector funds.

3. SEBI Significant Guidelines of mutual funds

• Requirements of the offer document: All mutual funds are required to have a clear offer document that elaborates on the purposes of the investment, risk, and costs, among other critical information. This is one of the things that an investor must read before investing.

• NAV and Calculation and Disclosure of NAV: SEBI requires the mutual funds to compute and publish their Net Asset Value (NAV) daily. This openness will aid you in monitoring the performance of your investment.

• Expense Ratio Limits: SEBI puts restrictions on the amount that the mutual funds can impose as expenditure. This guarantees investors are not overcharged with resultant returns. In equity funds, the expense ratio is limited at various levels with reference to the size of the fund.

• Capital Protection Schemes: SEBI has special provisions for schemes purporting to secure your capital. Such claims are not misleading because there are SEBI guidelines that verify such claims.

• Winding Up Rules: In case there is a need to close a mutual fund scheme, SEBI has very specific guidelines on the manner in which this should be conducted to safeguard the interests of the investors.

4. SEBI Mutual Fund Reclassification Rules

• One Scheme Per Category Rule: In 2017, SEBI came up with a new rule, which is unique to each category of scheme under the same fund house. This was to minimize confusion and ensure that they were actually different.

• Sectoral Funds (Index Funds): Although there are some exceptions to this rule. Fund houses may contain various sectoral funds (concentrating on various industries) and index funds (following various indices).

• Large-cap, Mid-cap, Small-cap Definitions: SEBI also standardized the meaning of large-cap, mid-cap, and small-cap. Large-cap funds should invest at least 80 percent in the 100 largest companies by market capitalization, mid-cap funds in 101 to 250, and small-cap funds in 251 and above. This standardization assists investors in comparing funds appropriately.

  When you are the type of person who enjoys examining mutual funds according to stock analysis fundamentals, you can use financial analysis techniques and financial ratio analysis to evaluate fund holdings.

  Websites like Dhanarthi help you compare various schemes through the Dhanarthi Stock Screener and learn how Dhanarthi helps you analyze financial reports to have a better understanding of the investments in the schemes.

Regulation of Stock Exchanges

• Registration Requirements: Establishing a Stock Exchange in India by registering with the Securities and Exchange Board of India (SEBI) requires that the Stock Exchange comply with an operating and financial level (i.e., the standard) as prescribed by SEBI for the purpose of regulating Stock Exchange functions.

• Exit Guidelines for Stock Exchanges: SEBI has provided for an exit provision for a Stock Exchange if titare looking to cease operations and for the protection of the interests of investors, if the Stock Exchange holds or ceases to operate as described in the exit provision.

• Minimum Net Worth Requirements: The minimum net worth requirement must be complied with by Stock Exchanges to maintain financial integrity. If a Stock Exchange meets the minimum requirement of Net Worth, this minimises the potential of a Stock Exchange from going bankrupt or insolvent, which ultimately protects all participants in the trading environment.

• Trading Volume Mandates: The minimum trading volume requirement also needs to be complied with by Stock Exchanges. If a Stock Exchange is continually unable to meet the Continuous Trading Volume Requirement of the stock exchanges, it can be penalised by SEBI.

• Surveillance and Monitoring: SEBI is continuously performing an oversight function on the operations of Stock Exchanges to ensure that they operate fairly and effectively. During its oversight of Stock Exchanges, SEBI monitors for such things as Technical Glitches, Market Manipulations, or other situations that would create a disadvantage to an investor.

SEBI New Rules and Regulations (2024-2025)

To stay up with changes in the market, SEBI updates its regulations regularly. Allow me to go over some of the most important new SEBI regulations that could have an impact on your investments.

1. Direct Payout of Securities

What Changed?

The most recent transformations include the direct payment of securities to the demat accounts of the clients. In the past, you used to sell shares, and the money used to go to the broker and then to yourself. 

In the same way that you purchased shares and they would be in the account of a broker for a little while, then they would be in your account.

• Phase 1 Implementation (INP January 2025) The initial stage of this transformation was done in January 2025 and centered on the payout side - to ensure that money generated in sales is received by clients promptly.

• Phase 2 Implementation (Beginning January 14, 2025) On January 14, 2025, phase 2, which deals with securities, began. The shares are now directly credited to your demat account, bypassing the pool account of the broker when you buy them.

Benefits for Investors

This transformation causes a great deal of risk reduction to investors. When a broker is in financial difficulties, your securities will not be abused since they are already in your account. It will be a massive move towards protecting the investors.

Effect on Brokers and Clearing Process

Although this is good for investors, it has necessitated the upgrade of the systems needed by the brokers and clearing corporations. The change has not been that smooth, but it is surely worth the shift to the added security.

2. Index Derivatives Frameworks Reforms

You have to be aware of these changes, should you be a trader in options or futures (derivatives). SEBI has undertaken certain significant reforms to the derivatives market to curb excessive speculation and to safeguard the retail investors who, in most cases, make losses in this industry.

Understanding option Greeks becomes crucial for options traders navigating these new regulations, as they help assess how option prices respond to various market factors.

Increased Minimum Contract Size ( 15-20 Lakh)

SEBI raised the minimum size of contracts of derivatives to 15-20 lakh. This reduces the access of very small investors to derivatives trading, which may initially appear problematic, but it is, in fact, protective. Derivatives are not quite safe, and most amateurs lose vast fortunes. SEBI is attempting to select only those that have sufficient capital by raising the minimum size.

Lot Size Revisions

• Lot sizes were updated to reach the larger contract size.

• Nifty: It has been raised by 25 to 60 shares per lot.

• Bank Nifty: Raised to 30 shares from 15 shares per share.

• Sensex: stood at 10 shares per lot.

Such developments increase the cost of each contract, of course, eliminating the over-speculation.

Weekly Expiry Limitations (One per Exchange)

Earlier, various weekly expiries were taking place in various indices. This has been limited by SEBI to one weekly expiry per exchange. Monitoring open interest patterns becomes even more important under these new limitations.

Extreme Loss Margin (ELM)- 2 on Expiry Day

SEBI has increased the extreme loss margin to 2 percentage points on expiry days when volatility is known to be elevated. Understanding India VIX movements during expiry periods helps traders gauge expected volatility levels.

For those practicing intraday trading, these reforms significantly impact short-term derivative strategies and capital requirements.

Calendar Spread Margin Elimination

Spreads that pay off at the close of the month have been eliminated by SEBI, so such short-term strategies have become more capital-consuming. This is to be changed in order to minimize complicated speculations.

Timeline of implementation (November 2024 - April 2025)

These derivatives reforms will be implemented in stages between November 2024 and April 2025 to allow the market time to adapt.

3. Proposed Change of Mutual Fund Expense Ratio Changes

Some changes in the charge of expenses on mutual funds, which might favor investors, have been suggested.

Statutory Levy Exclusions

SEBI is looking at excluding some statutory levies in the ratio of expenses calculation that would provide investors with a better insight into the actual costs of management.

Lower TER Limits

It is discussed how to reduce the Total Expense Ratio (TER) limits further; this would result in less expensive costs to investors.

Performance-Linked Fees

SEBI too is looking into a performance-based fee structure where fund managers can receive higher returns only when they deliver higher returns. This makes their interests agree with yours.

Ergonomic deletion of 5 bps Charge

The 5 basis points higher premium on the investments made by smaller cities could be eliminated, and mutual funds would become affordable nationwide.

4. Reforms in the Corporate Governance

Regulatory announcement of Insider Trading

SEBI has made its insider trading laws more vivid and strict in terms of monitoring.

Enhanced Interpretation of the term "Connected Persons."

This definition of a connected person (those who have access to inside information) has been widened. This seals loopholes that were being exploited by some individuals to avoid the insider trading regulations.

PAN-ISIN Freeze Mechanism

SEBI may currently freeze the trading of particular individuals in particular securities in case of suspected insider trading. This will be a potent instrument to avoid illegal trading.

Trading Window Closure Regulations

Companies are now forced to extend their trading windows (the times during which insiders are not able to trade) during timeframes of significant announcements. This minimizes the chances of information leakage.

5. Market Intermediary Annual Reports

Advance arrangement of premiums

Options will now require brokers to collect the entire option premium at the time you purchase options. This avoids cases where traders can engage in a position that they cannot afford.

Intra-Day Position Surveillance (April 2025)

Beginning April 2025, intraday position monitoring will be enhanced to identify excessive leverage or risky trading behaviors promptly, allowing for prevention before they become issues.

Broker Registration alterations

SEBI also revised its requirements regarding the registration of brokers, making it stricter so that only qualified entities can operate.

SEBI Guidelines and Regulations Overview

Over the years, the Securities and Exchange Board of India (SEBI) has established a lot of SEBI guidelines and regulations. The most significant ones are mentioned below.

• SEBI (Prohibition of Insider Trading) Regulations, 2015: Essentially, these are the regulations that set the framework of the whole process of insider trading, besides laying down the definition of it and imposing a complete ban on it.

  Among other things, the companies that handle the public trading of stocks will have to keep proper digital records of people who have access to confidential price-sensitive information and monitor them.

  One might think that this is all very light and easy to handle from the regulatory end, but the truth is that the violating companies will have to pay very heavy fines and suffer heavy damages in case of any non-compliance or negligence.

• SEBI (LODR) Regulations, 2015: LODR is the abbreviation for Listing Obligations and Disclosure Requirements. These regulations examine the instances of investor information and the timing of the disclosure that companies are required to make. They assure that you, as an investor, are continuously receiving accurate and prompt information about the companies in which you have invested.

• SEBI (SAST) Regulations, 2011: SAST means Substantial Acquisition of Shares and Takeovers. The regulations regulate the actions that come into play when a person seeks to purchase a significant amount of a company’s shares. The process ensures that the minority shareholders of the company are treated fairly and not adversely affected during the transfer of ownership.

• SEBI Advertisement Code: In India, SEBI is very strict with the promotion of financial instruments. This rule prevents the provision of misleading information. It is very common for you to see disclaimers in the advertisements of mutual funds saying that past performance does not guarantee future returns; this is a manifestation of the code imposed by SEBI in advertising.

• SEBI SCORES (Complaint Redressal): SCORES is an SEBI acronym for the Complaint Redressal System. It's a digital center where the investors can lodge their complaints regarding the companies or the intermediaries. I am going to talk more about it later, but just the existence of such a platform is something that every investor must be aware of.

Objectives of SEBI

Allow me to state briefly what the core goal of SEBI is in its undertaking. SEBI operational and objectives.

Primary Objectives

• Investor Protection: This is the priority of SEBI. All the rules, all the regulations, all the guidelines are eventually allied to ensuring that investors are not defrauded, manipulated, and unfairly dealt with.

• Bonds and stocks market development: SEBI does not simply desire to protect, but the market grow and develop. A bigger and more effective market is good for all: investors, companies, and the economy at large.

• Market Regulation: SEBI is trying to ensure that the market is controlled in a manner that is not overbearing and restrictive. Over-regulation would influence the stifling of innovation and growth, and under-regulation may result in chaos. SEBI attempts to strike the right balance.

Secondary Objectives

• Fair Trading Promotion: SEBI is trying to make all people have equal access to information and opportunities. Fair trading practices build trust in the market.

• Malpractice Prevention: SEBI attempts to stop malpractices by monitoring and regulating the activities of the companies so that they do not damage investors.

• Striking a Balance between Self-Regulation and Regulation: SEBI advocates certain measures of self-regulation for market players by establishing industry associations and professional codes of behavior. But it also intervenes with regulatory power when self-regulation is not sufficient.

SEBI Impact on the Indian Stock Market

• Market Transparency Improvements: One of the most important contributions that SEBI made to the Indian market was the transparency of the market. Due to the requirement for full disclosure, investment decisions by investors are now based on much better information than in the past.

• Dematerialization Success: The dematerialization process that involves the transition of shares from physical certificates to electronic forms is one of the most successful practices of the stock market. As a result, trading became faster, and small investors who were once skeptical of the market were empowered to participate in it with full confidence.

• T+2 Settlement Cycle: A T+2 settlement cycle is currently in place, where if the shares are sold on Monday, the money will be credited to the seller's account by Wednesday. SEBI is also looking at T+1 settlement to take speed to a new level.

• Mutual Fund Industry Growth: The regulatory body SEBI has contributed a lot to the growth of the Indian mutual fund industry. The number of people investing in mutual funds has never been higher, and the industry's Assets Under Management have reached an all-time high. Regulations that are simple and clear have made investors realize the safety of their investments in such products.

• Technology Adoption: One of the biggest proponents of technology adoption among regulators has been SEBI. The use of technology in Indian markets includes online trading, filing complaints digitally, and regulating algorithmic trading.

  For investors, understanding both fundamental analysis vs technical analysis becomes important as digital platforms provide access to both approaches. Using technical analysis principles, charts, and indicators on regulated platforms ensures fair trading practices.

  If you enjoy using technology for stock analysis and want to understand the basics better, websites like Dhanarthi make financial statement analysis simple for beginners by providing clear data through tools like the best fundamental stock analysis websites in India.

• Challenges and Criticisms: SEBI, while a triumphant entity, still has its fair share of hurdles to cross. Some critics say that the agency is not fast enough in responding to new financial ideas. Moreover, the enforcement of rules is seen as a weakness by others. Just as with the case of SEBI's penalties, its approach to offenses is viewed as too mild.

Conclusion

The SEBI's new rules we discussed, show how proactive the organization is in addressing emerging risks and protecting investors.

For you as an investor, understanding what SEBI is and how its regulations work is extremely important. It helps you know your rights, stay aware of safeguards, and identify when something feels off in the market. The more you understand SEBI guidelines, the more confidently you can invest.

Whether you're studying stock fundamentals, using tools like Dhanarthi's screener, or comparing companies through financial report analysis, SEBI works quietly in the background to keep markets fair and transparent. It may not be perfect, but it plays a major role in protecting your financial future.

FAQs