Enacted 1992Financial Markets & BankingBrief

The Securities and Exchange Board of India Act, 1992

Establishes SEBI, its functions, powers of investigation, penalties, appellate tribunal, and the framework for protection of investor interests.

In one line

What this Act says

Creates SEBI as the watchdog of India's securities markets â€” registers intermediaries, polices fraud, and protects investors.

Penalties

4 headline offences

Insider trading
Â§15G
Penalty â‚¹10 lakh â€“ â‚¹25 crore or 3Ã— the profit made, whichever is higher.
Fraudulent / unfair trade practices
Â§15HA
Penalty â‚¹5 lakh â€“ â‚¹25 crore or 3Ã— the profit made.
Failure to comply with SEBI directions
Â§24
Imprisonment up to 10 years and/or fine up to â‚¹25 crore.
Failure to file required disclosure / return
Â§15A
Penalty â‚¹1 lakh per day, max â‚¹1 crore.

Headline offences only — not exhaustive. For the full text and every section, open the source PDF or the official link below.

Key Sections & Penalties

Showing 5 of 7

Section	Type	Provision	Applicability	Details / Penalty
§11	structural	Functions of Board	-	Administrative / Structural
§12	structural	Registration of stock brokers, sub-brokers, share transfer agents, etc.	-	Administrative / Structural
§12A	structural	Prohibition of manipulative and deceptive devices, insider trading	-	Administrative / Structural
§15G	civil	Insider trading	-	Penalty ₹10 lakh – ₹25 crore or 3× the profit made, whichever is higher medium RISK
§15HA	civil	Fraudulent / unfair trade practices	-	Penalty ₹5 lakh – ₹25 crore or 3× the profit made medium RISK

Maximum punishments as prescribed by the Act. Actual sentencing depends on facts, prior convictions and judicial discretion.

Sources

We always show you the local source PDF and at least one verifiable online reference, so you can check anything we say.

Source PDF

SEBI Act, 1992 Regulations.pdf

Full text · opens in new tab

Reference

Wikipedia

en.wikipedia.org · opens in new tab

About this Act