SEBI
Full form: Securities and Exchange Board of India
InvestmentsSEBI is India's capital markets regulator, established in 1992. It regulates stock exchanges, brokers, mutual funds, investment advisors, and all securities market participants. SEBI's mandate is to protect investor interests, promote market development, and regulate the securities market.
In detail
SEBI's key roles for retail investors: mutual fund regulation (expense ratio caps, fund categorisation, direct plan mandate), stock market oversight (Sensex, Nifty), broker regulation (SEBI-registered brokers only), investor education, and complaint resolution.
Key SEBI mandates that protect you: mutual fund direct plans (forcing lower expense ratios), T+1 settlement (faster transfer of shares), fund categorisation (standardising what each fund type can hold), and Investor Protection and Education Fund (IPEF) for investor awareness.
SEBI SCORES portal (scores.sebi.gov.in) handles complaints against listed companies, brokers, and mutual funds.
Real-life example
Before SEBI's 2013 direct plan mandate, all mutual funds were regular plans with distributor commissions baked in. After the mandate, direct plans launched with 0.5-1% lower expense ratios. On Rs 10L invested for 20 years at 12% gross, this 1% saving creates Rs 23L more corpus. SEBI regulation directly added wealth to millions of retail investors.