Securities and Exchange Board of India Act, 1992
An Act to provide for the establishment of a Board to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental thereto.
TaxByKK · Laws by Sector · taxbykk.comIndex as on 25th August, 2026
Index of provisions · 10 chapters, 92 sections
I PreliminaryII Establishment of the Securities and Exchange Board of IndiaIII Transfer of Assets, Liabilities, Etc., of the Existing Securities and Exchange Board to the BoardIV Powers and Functions of the BoardV Registration CertificateVA Prohibition of Manipulative and Deceptive Devices, Insider Trading and Substantial Acquisition of Securities or ControlVI Finance, Accounts and AuditVIA Penalties and AdjudicationVIB Establishment, Jurisdiction, Authority and Procedure of Securities Appellate TribunalVII Miscellaneous
Chapter I Preliminary2 sections
Chapter II Establishment of the Securities and Exchange Board of India8 sections
- 3Establishment and incorporation of Board
- 4Management of the Board
- 5Term of office and conditions of service of Chairman and members of the Board
- 6Removal of member from office
- 7Meetings
- 7AMember not to participate in meetings in certain cases
- 8Vacancies, etc., not to invalidate proceedings of Board
- 9Officers and employees of the Board
Chapter III Transfer of Assets, Liabilities, Etc., of the Existing Securities and Exchange Board to the Board1 section
- 10Transfer of assets, liabilities, etc., of existing Securities and Exchange Board to the Board
Chapter IV Powers and Functions of the Board6 sections
Chapter V Registration Certificate1 section
- 12Registration of stock-brokers, sub-brokers, share transfer agents, etc
Chapter VA Prohibition of Manipulative and Deceptive Devices, Insider Trading and Substantial Acquisition of Securities or Control1 section
- 12AProhibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control
Chapter VI Finance, Accounts and Audit3 sections
Chapter VIA Penalties and Adjudication17 sections
- 15APenalty for failure to furnish information, return, etc
- 15BPenalty for failure by any person to enter into agreement with clients
- 15CPenalty for failure to redress investors’ grievances
- 15DPenalty for certain defaults in case of mutual funds
- 15EPenalty for failure to observe rules and regulations by an asset management company
- 15EAPenalty for default in case of alternative investment funds, infrastructure investment trusts and real estate investment trusts
- 15EBPenalty for default in case of investment adviser and research analyst
- 15FPenalty for default in case of stock brokers
- 15GPenalty for insider trading
- 15HPenalty for non-disclosure of acquisition of shares and takeovers
- 15HAPenalty for fraudulent and unfair trade practices
- 15HAAPenalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board
- 15HBPenalty for contravention where no separate penalty has been provided.
- 15-IPower to adjudicate
- 15JFactors to be taken into account while adjudging quantum of penalty
- 15JACrediting sums realised by way of penalties to Consolidated Fund of India
- 15JBSettlement of administrative and civil proceedings
Chapter VIB Establishment, Jurisdiction, Authority and Procedure of Securities Appellate Tribunal21 sections
- 15KEstablishment of Securities Appellate Tribunal
- 15LComposition of Securities Appellate Tribunal
- 15MQualification for appointment as Presiding Officer, Judicial Member and Technical Member
- 15MAAmendment of Presiding Officer and Judicial Member
- 15MBSearch-cum-Selection Committee for appointment of Technical Members
- 15MCVacancy not to invalidate selection proceeding
- 15NTenure of office of Presiding Officer, Judicial or Technical Members of Securities Appellate Tribunal.
- 15-OSalary and allowances and other terms and conditions of service of Presiding Officers
- 15PFilling up of vacancies
- 15PAMember to act as Presiding Officer in certain circumstances
- 15QResignation and removal
- 15QASelection, qualifications, conditions of service, allowances, etc
- 15ROrders constituting Appellate Tribunal to be final and not to invalidate its proceedings
- 15SStaff of the Securities Appellate Tribunal
- 15TAppeal to the Securities Appellate Tribunal
- 15UProcedure and powers of the Securities Appellate Tribunal
- 15VRight to legal representation
- 15WLimitation
- 15XPresiding Officer, Members and staff of Securities Appellate Tribunals to be public servants
- 15YCivil Court not to have jurisdiction
- 15ZAppeal to Supreme Court
Chapter VII Miscellaneous32 sections
- 16Power of Central Government to issue directions
- 17Power of Central Government to supersede the Board
- 18Returns and reports
- 19Delegation
- 20Appeals
- 20ABar of jurisdiction
- 21Savings
- 22Members, officers and employees of the Board to be public servants
- 23Protection of action taken in good faith
- 24Offences
- 24AComposition of certain offences
- 24BPower to grant immunity
- 25Exemption from tax on wealth and income
- 26Cognizance of offences by courts
- 26AEstablishment of Special Courts
- 26BOffences triable by Special Courts
- 26CAppeal and revision
- 26DApplication of Code to proceedings before Special Court
- 26ETransitional provisions
- 27Contravention by companies
- 28[Omitted]
- 28ARecovery of amounts
- 28BContinuance of proceedings
- 28CPowers of Board not to apply to International Financial Services Centre
- 29Power to make rules
- 30Power to make regulations
- 31Rules and regulations to be laid before Parliament
- 32Application of other laws not barred
- 33[Repealed.]
- 34Power to remove difficulties
- 34AValidation of certain acts
- 35Repeal and saving.
About this Act
The Securities and Exchange Board of India Act, 1992 (Act 15 of 1992) establishes SEBI (section 3) as the regulator of the securities market, with the mandate to protect investors and to promote and regulate the market. SEBI's functions are set out in section 11.
The Act empowers SEBI to register intermediaries, issue directions, investigate, pass cease and desist orders, prohibit insider trading and manipulative practices, and levy penalties. Appeals against SEBI orders go to the Securities Appellate Tribunal, set up under Chapter VIB.
It has ten chapters, including Chapter VIA on penalties and adjudication (sections 15A to 15JB) and Chapter VII, which covers offences, Special Courts and recovery of amounts.
Who it applies to
- Listed companies and issuers of securities
- Stock-brokers, share transfer agents and other intermediaries registered under section 12
- Mutual funds, asset management companies, alternative investment funds and collective investment schemes
- Investment advisers and research analysts
- Any person dealing in securities, including insiders and acquirers of shares
Good to know
- Key chapters
- Chapter IV (powers and functions of SEBI), Chapter VA (manipulative practices, insider trading and substantial acquisition), Chapter VIA (penalties) and Chapter VIB (Securities Appellate Tribunal).
- Amended by
- Many Acts, including the Securities Laws (Amendment) Acts of 1995, 1999 and 2014, the SEBI (Amendment) Act, 2002 and several Finance Acts.
Frequently asked questions
Which section sets out the functions of SEBI?
Section 11.
Which section prohibits insider trading?
Section 12A; the penalty for insider trading is in section 15G.
Where is registration of intermediaries required?
Section 12.
Which section provides for settlement of proceedings with SEBI?
Section 15JB.
Where does an appeal against a SEBI order lie?
To the Securities Appellate Tribunal under section 15T, and then to the Supreme Court under section 15Z.