The main regulatory body in charge of monitoring India's securities markets is the Securities and Exchange Board of India (SEBI). Since it was founded in 1992, SEBI's main goal has been to protect investors' interests, keep the securities markets honest, and encourage their orderly growth. It reaches these objectives by putting in place a strong set of rules and regulations that apply to all market participants, such as investors, listed companies, stock exchanges, and listed companies.
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SEBI Regulations
The Indian securities market is supported by a number of significant regulations that SEBI has introduced. Some of the most important regulations are listed below:
1. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR)
Listed companies are required by the LODR regulations to follow corporate governance guidelines and provide the public with important information. In order for investors to make wise decisions, these regulations ensure transparency and accountability. These regulations were updated by SEBI in 2025 to increase the threshold for materiality for SMEs listed on exchanges and to tighten disclosure requirements particularly with regard to related party transactions.
2. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR)
The ICDR regulations control the issuance of securities by companies, such as public offerings, rights issues, and first-choice distributions. Companies must abide by these regulations in order to give investors all the information they need to make an informed decision. By removing the need for lead managers in some situations SEBI changed these regulations in 2025 to make the rights issue process easier for companies to raise money and cut down on the amount of paperwork that was required.
3. SEBI (Prohibition of Insider Trading) Regulations, 2015
These regulations prohibit trading based on unpublished price-sensitive information (UPSI). Insider trading occurs when someone uses non-public information to trade stocks. SEBI ensures that people with access to such information do not misuse it. It also requires companies to disclose any material information that could affect stock prices. In 2025 SEBI amended these regulations to expand the definition of UPSI to include information about the award or termination of orders or contracts not in the ordinary course of business.
4. SEBI (Mutual Funds) Regulations, 1996
Mutual funds operating in India are subject to these regulations. They make rules about how mutual funds can be set up and run. They also make sure that mutual funds handle investor money in an honest way. In order to protect investors' interests and guarantee the openness of mutual fund operations SEBI amended these regulations in 2025.
Also, Checkout Key Differences Between Hedge Fund vs Mutual Fund vs Private Equity
5. SEBI (Alternative Investment Funds) Regulations, 2012
Alternative investment funds (AIFs) must follow these regulations in order to operate. Private equity funds, hedge funds and venture capital funds are all types of AIFs. SEBI makes sure that these funds follow the rules and are open to everyone. To further simplify the regulatory framework for these funds and encourage their growth and development, SEBI amended these regulations in 2025.
6. SEBI (Research Analysts) Regulations, 2014
Research analysts, who give the public stock recommendations and financial advice, are governed by these regulations in their work. They set standards for how analysts should behave and make sure that their reports are clear, impartial, and free of any conflicts of interest. In order to ensure a higher standard of integrity and investor protection SEBI amended these regulations in 2025 to strengthen the independence of research reports and impose stricter compliance requirements on research analysts and firms.
7. SEBI (Investment Advisers) Regulations, 2013
The goal of the Investment Advisers Regulations is to set rules for people and businesses that give investment advice to clients. They make advisers register with SEBI and follow a strict code of conduct to make sure the advice they give is good for their clients. Disclosure of any conflicts of interest is also a requirement of the regulations. In 2025, SEBI introduced amendments to enhance the transparency of advisory services, strengthening the regulations to improve investor protection and ensure a more ethical advisory environment.
Also, Get to Know About the Companies Act 2013.
Recent Amendments to SEBI Regulations (2025)
To keep up with the changing needs of the financial market and improve investor protection, SEBI made several significant amendments to its regulations in 2025. The following are some of the most significant amendments:
Expansion of Same-Day Settlement (T+0) for Top 500 Stocks: Starting from January 31, 2025, SEBI introduced an optional same-day settlement cycle for the top 500 stocks by market capitalization. This initiative aims to enhance liquidity and improve market efficiency.
Strengthening Insider Trading Regulations: SEBI added new types of information to the definition of unpublished price-sensitive information (UPSI), such as changes to business contracts and orders. This extension makes sure that investors are safer.
Easing the Process for Rights Issues: Companies raising money through rights issues can now do so more quickly and easily thanks to SEBI. The new rules make it easier for companies to raise money by getting rid of the need for lead managers in some situations and cutting down on the paperwork that needs to be done.
Review of ESG Disclosure Requirements: SEBI began reviewing environmental, social, and governance (ESG) disclosure requirements in April 2025. This review seeks to ensure that companies provide meaningful and accurate ESG information, which is becoming increasingly important for investors.
SEBI's Role in Market Integrity
The SEBI is very important for keeping the Indian securities market honest. SEBI makes sure that the market is honest and open by enforcing regulations that stop fraud, market manipulation, and insider trading. Its regulatory framework also requires companies to give investors important information at the right time. This helps investors make smart choices.
In order to regulate and develop the securities market SEBI performs the following important tasks
Regulating Market Intermediaries: SEBI registers and regulates market intermediaries such as stockbrokers, merchant bankers, and investment advisers to ensure their proper functioning.
Prohibiting Unfair Trade Practices: SEBI takes measures to prevent fraudulent and unfair trade practices including insider trading and market manipulation.
Promoting Investor Education: SEBI undertakes initiatives to educate investors about the securities markets and their rights and responsibilities.
Regulating Takeovers and Acquisitions: SEBI keeps an eye on and controls large share purchases and takeovers to make sure that all shareholders are treated fairly.
Summing Up
The regulatory framework set up by SEBI is very important for keeping the Indian securities market healthy and honest. SEBI promotes trust and fairness in the financial markets through its many regulations, which ensure transparency, safeguard investors and protect them. With the most recent amendments in 2025 SEBI continues to change with the market, encouraging new ideas while protecting investors' rights. As India's regulatory body SEBI is still at the forefront of pushing for changes that will make the country's securities market more dynamic, open and equitable.
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SEBI Regulations: FAQs
Q1. What are SEBI's new rules?
SEBI's new regulations involve changes to increase market transparency, investor protection and operational efficiency. Some of the key changes in 2025 are the introduction of same-day settlement (T+0) for the top 500 stocks, increased insider trading regulations and simplified capital-raising procedures for companies.
Q2. Why are SEBI regulations important?
SEBI regulations are significant since they provide transparency, fairness and accountability in the securities markets. They safeguard investors from fraud and unfair trade practices, maintain market stability and enhance growth in the capital markets.
Q3. What are SEBI's recent amendments in 2025?
In 2025, SEBI introduced amendments such as the expansion of the same-day settlement (T+0) for top 500 stocks, changes to insider trading regulations, and an easing of the rights issue process to make capital raising more efficient.
Q4. How does SEBI protect investors?
SEBI protects investors by regulating market intermediaries, preventing fraudulent practices, ensuring timely and accurate disclosures by companies and taking action against violators of securities laws.
