Why this matters now
SEBI is tested for: its origins in the 1988 Harshad Mehta-driven push for a securities regulator, the 1992 statutory empowerment, its quasi-legislative + quasi-judicial + executive powers, the Securities Appellate Tribunal (SAT) appellate route, the Adani-Hindenburg controversies under Madhabi Puri Buch (2022-25), and the recent F&O regulatory tightening + small-cap stress test.
Structure
SEBI Board: Chairperson + 2 members from Central Govt + 1 RBI member + 5 other members (3 whole-time) = 9 members. Chair + WTMs appointed by Central Govt for 5 years (renewable). HQ Bandra-Kurla Complex Mumbai. Regional offices at Ahmedabad (Western), Delhi (Northern), Chennai (Southern), Kolkata (Eastern). Local offices at Hyderabad, Jaipur, Indore, Lucknow, Patna, Pune, Guwahati, Bhubaneswar, Kochi, Chandigarh.
Powers & functions
Under Section 11 of SEBI Act 1992, SEBI’s three classical roles:
- Protective: investor protection, prevention of fraud + insider trading + price manipulation; investor awareness; PIL-style intervention.
- Developmental: promoting fair and orderly markets — introducing dematerialisation (DEMAT, since 1996), T+1 settlement (2023), small-and-medium-enterprise platforms.
- Regulatory: registering and regulating stockbrokers, sub-brokers, merchant bankers, FIIs/FPIs, mutual funds, REITs, InvITs, AIFs, investment advisors, depositories (NSDL 1996, CDSL 1999), stock exchanges (BSE, NSE, MCX).
Quasi-judicial: SEBI passes adjudication orders. Appeals lie to the Securities Appellate Tribunal (SAT), then to the Supreme Court. SEBI has powers of a civil court (Section 11(3)). SEBI (Prohibition of Insider Trading) Regulations 2015; SEBI (LODR) Regulations 2015; SEBI (Mutual Funds) Regulations 1996.
Recent
Past Chairs: D.R. Mehta (1995-2002), G.N. Bajpai (2002-05), M. Damodaran (2005-08), C.B. Bhave (2008-11), U.K. Sinha (2011-17), Ajay Tyagi (2017-22), Madhabi Puri Buch (March 2022 - February 2025) — 1st female SEBI Chair — oversaw the Adani-Hindenburg case (Jan 2023) and was herself named in the August 2024 Hindenburg follow-up report (denied wrongdoing). Tuhin Kanta Pandey (ex-DIPAM Secretary), 11th Chair, sworn 1 March 2025 for 3 years. F&O tightening (lot size hike + product-attribute changes Sept-Nov 2024); small-cap stress test framework (Feb 2024); mandatory T+1 settlement rolled out 2023, T+0 optional 2024.
UPSC angle
Know SEBI — est. EXECUTIVE BODY 12 April 1988 (post Harshad Mehta push), STATUTORY by SEBI ACT 30 January 1992; HQ Bandra-Kurla Complex MUMBAI; 4 regional offices Ahmedabad Delhi Chennai Kolkata; Board 9 members = Chairperson + 2 Govt + 1 RBI + 5 others (3 whole-time); SECTION 11 SEBI Act = (1) Protective (investor protection, anti-fraud/insider trading/price manipulation), (2) Developmental (DEMAT 1996, T+1 settlement 2023, SME platforms), (3) Regulatory (brokers, FII/FPI, MF, REITs, InvITs, AIFs, advisors, NSDL 1996 + CDSL 1999, BSE+NSE+MCX); SECURITIES APPELLATE TRIBUNAL (SAT) appellate route, then Supreme Court; key regulations Prohibition of Insider Trading 2015, LODR 2015, Mutual Funds 1996; Chairs D.R. Mehta 1995-2002, G.N. Bajpai, M. Damodaran, C.B. Bhave, U.K. Sinha, Ajay Tyagi, MADHABI PURI BUCH March 2022 - Feb 2025 (1st female, Adani-Hindenburg Jan 2023 + named in Aug 2024 report), TUHIN KANTA PANDEY (ex-DIPAM Secy) 11th Chair sworn 1 March 2025 for 3 yrs; T+1 settlement 2023, T+0 optional 2024.
Frequently asked questions
When was SEBI established?
As an executive body on 12 April 1988 (post Harshad Mehta scam push) and given statutory status by the SEBI Act on 30 January 1992.
Who is the current SEBI Chairperson?
Tuhin Kanta Pandey — sworn in as 11th Chairperson on 1 March 2025 for a 3-year term. Succeeded Madhabi Puri Buch (1st female Chair).
What is SAT?
Securities Appellate Tribunal — the appellate body for SEBI orders. Further appeals lie to the Supreme Court.
What is T+1 settlement?
From January 2023, all listed equities settle one trading day after the trade date (T+1), down from T+2. T+0 optional pilot launched 2024.