What it means
Set up in 1988 and given legal powers in 1992, SEBI writes the rules for how markets operate and who may offer services in them. Brokers, investment advisers and research analysts must be registered with it. Complaints against a registered firm can be filed through its SCORES portal.
Example
Its study of the year to March 2025 found that 91% of individual traders in equity derivatives lost money.
In practice
SEBI's rules shape what an Indian trader can do: which contracts exist, how large a lot is, how much margin is needed and when contracts expire. Its changes since 2024, such as larger lots and fewer weekly expiries, were aimed at reducing losses among small derivatives traders.
Before paying for advice or signals, check the person or firm on SEBI's website. Anyone giving paid investment advice or research in India needs to be registered, and the registration number can be looked up.
What to watch for
Tipsters on social media and messaging apps who promise returns are very often unregistered, and money paid to them is hard to recover. A registration number can also be copied from a real adviser, so match the name, number and contact details on SEBI's own register.
Related terms
4 terms- RegulatorA government body that licenses firms and polices markets, like the SEC and CFTC in the US or the FCA in the UK.
- F&OFutures and options: the derivatives segment of the Indian stock market, where contracts on indices and stocks trade in fixed lots.
- NSE and BSEIndia's two main stock exchanges: the National Stock Exchange, home of the Nifty 50, and the Bombay Stock Exchange, home of the Sensex.
- BrokerThe company that gives you access to markets and sends your orders on for execution.