SEBI — Securities and Exchange Board of India
Comprehensive guide to SEBI regulations — investor protection, mutual fund rules, stock market regulations, insider trading, IPO rules, SEBI complaints, and registered intermediaries.
🏛️ Background
The Securities and Exchange Board of India (SEBI) was established on 12 April 1988 as a non-statutory body and given statutory powers through the SEBI Act, 1992 (enacted on 30 Jan 1992). SEBI's mandate is to protect investors, develop the securities market, and regulate it. Headquartered in Mumbai (Bandra Kurla Complex), SEBI regulates stock exchanges, mutual funds, brokers, investment advisers, credit rating agencies, and more.
🔒 Key Investor Protections
📊 SEBI (LODR) Regulations, 2015
Listing Obligations and Disclosure Requirements — mandates quarterly financial results, corporate governance compliance, related party transaction disclosures for listed companies.
🚫 SEBI (PIT) Regulations, 2015
Prohibition of Insider Trading — bars trading on unpublished price sensitive information (UPSI). Insiders must disclose trades; trading window closures before results.
💰 SEBI (SAST) Regulations, 2011
Substantial Acquisition of Shares and Takeovers — open offer required when acquiring >25% or additional 5% in a listed company. Minimum 26% of total shares at offer price.
🏛️ SCORES Portal
SEBI Complaints Redress System — online platform for investors to lodge complaints against listed companies, intermediaries. Target resolution: 30 days.
📈 Mutual Fund Regulations (SEBI MF Regulations, 1996)
- ✅ NAV Disclosure: Daily NAV publication mandatory for all open-ended schemes
- ✅ Expense Ratio Caps: Equity schemes: 2.25% (first ₹500 Cr AUM), sliding down to 1.05% for AUM >₹50,000 Cr. Index funds: max 1%
- ✅ Exit Load: Maximum 2% within 1 year. ELSS has 3-year lock-in. No exit load on liquid funds after 7 days
- ✅ Skin in the Game: Key employees of AMC must invest 20% of salary/CTC in own fund schemes (min 3-year lock-in)
- ✅ Scheme Categorization: 36 defined categories — no AMC can have more than 1 scheme per category (except index, ETF, fund of funds, sectoral)
- ✅ KYC: Mandatory e-KYC via Aadhaar-based or CKYC for all investors. Min ₹100 SIP allowed
📋 IPO Regulations (SEBI ICDR Regulations, 2018)
- 📌 Eligibility: Net tangible assets ≥₹3 Cr for 3 years; average operating profit ≥₹15 Cr in 3 of 5 preceding years; net worth ≥₹1 Cr each of 3 years
- 📌 Reservation: 35% retail, 15% NII (non-institutional), 50% QIB (qualified institutional buyers)
- 📌 Lock-in: Promoter holding: 18 months (min 20% of post-issue capital). Pre-issue capital of non-promoters: 6 months
- 📌 SME IPO: BSE SME / NSE Emerge platform for companies with post-issue paid-up capital ≤₹25 Cr. Minimum lot size ₹1,00,000
⚠️ Disclaimer
This page is for educational and informational purposes only and does not constitute legal, tax, or financial advice. While we strive for 100% accuracy, laws and regulations change frequently. Always refer to the official gazette notifications, consult a qualified Chartered Accountant (CA), Company Secretary (CS), or legal professional before making any financial or legal decisions. Tenhash is not responsible for any actions taken based on this information. Last reviewed: March 2026.