Securities and Exchange Board of India marks 38th Foundation Day on April 25, 2026

SEBI's foundation dates back to April 12, 1988, when it was initially constituted by a resolution of the Government of India. However, it gained full legal and statutory status only after the SEBI Act was passed by Parliament in 1992, following the 1992 securities scam. Over the last 38 years, the regulator has evolved from a nascent oversight body into a powerful institution governing stock exchanges, brokers, mutual funds, and various other market intermediaries. Its mandate includes three main functions: quasi-legislative (drafting regulations), quasi-judicial (passing orders), and quasi-executive (conducting investigations).

The celebration of the 38th year comes at a time when the Indian capital markets have reached record highs in terms of market capitalization and retail participation. SEBI's recent focus has shifted towards technological integration, including the use of AI for market surveillance and the implementation of T+0 settlement cycles on a pilot basis. The institution's journey reflects the broader liberalization of the Indian economy and the shift from physical certificates to a completely dematerialized trading environment. Its role in overseeing Initial Public Offerings (IPOs) and regulating Foreign Portfolio Investors (FPIs) remains central to India's financial stability.

Glossary

Statutory Body: An organization that has been established by an Act of Parliament and is authorized to make rules and enforce laws within its jurisdiction.

Capital Market: A financial market in which long-term debt or equity-backed securities are bought and sold.