SEBI and Investor Protection — How You’re Safeguarded
SEBI regulates India’s securities market to protect investors. Here’s what it does and the protections you have.
On this page
SEBI — the Securities and Exchange Board of India — is the regulator of India’s securities market. Its core mandate is to protect investors, develop the market, and regulate its participants.
What SEBI does
- Regulates intermediaries — brokers, AMCs, RIAs, depositories and exchanges must follow its rules and are licensed by it.
- Sets disclosure norms — companies and funds must disclose information fairly, so investors can decide on equal footing.
- Curbs malpractice — tackles insider trading, manipulation and fraud, and runs surveillance (e.g. ASM/GSM).
- Protects client assets — rules on segregation of client funds, running account settlement, and pledge authorisations keep your money and shares yours.
Protections you have as an investor
- Your securities sit in your own demat at a depository, not with the broker.
- KYC via KRAs standardises and secures onboarding.
- Grievance redressal — you can escalate complaints against intermediaries (see our grievance page), and SEBI runs a complaints system (SCORES) and an online dispute-resolution mechanism.
- Investor Protection Funds at exchanges provide limited compensation in specified default situations.
Your part
Protection works best when you do your bit: deal only with SEBI-registered intermediaries, keep KYC updated, verify contract notes and statements, and never share credentials or OTPs. SEBI builds the guardrails — using them is up to you. Education only, not advice.
