A Brief On SEBI Regulations And Recent Amendments

Introduction

The Securities and Exchange Board of India (SEBI) is the primary regulatory agency responsible for overseeing India's securities markets. Since its inception in 1992, SEBI's primary mission has been made to protect the interests of investors, keep securities markets sincere, and promote orderly growth. It achieves these goals by establishing a robust set of regulations and guidelines to all market players, including investors, listed firms, exchanges for stocks, and listed companies. This blog briefly SEBI's role and its recent guidelines for protecting investors rights and market. 

SEBI Regulations

SEBI has implemented several key policies to help the Indian securities sector. Some of them are given below: -

1.SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015  (LODR) 

LODR requirements require listed corporations to follow corporate governance guidelines and publish significant data to the public. These standards ensure transparency and accountability, allowing investors to make informed judgments.  SEBI revised these laws in 2025, raising the materiality bar for SMEs listed on exchanges and tightening disclosure requirements, notably for related party transactions.

2.SEBI (Issue of Capital and Disclosure Requirements Regulations), 2018 (ICDR) 

The ICDR regulations control how corporations issue securities, including public offerings, issues related to rights, and first-choice distribution. Companies must comply with these standards in order to provide investors with all of the knowledge they require in order to make a well-informed choice. By eliminating the necessity for lead managers in some cases, SEBI amended these rules in 2025 to make the rights issue procedure easier for companies to raise funds and reduce the amount of paperwork required.

3. SEBI (Prohibition of Insider Trading), 2015

These rules ban trading with respect to unpublished price-sensitive information (UPSI).  Insider trading happens when someone trades stocks based on non-public information.  SEBI guarantees that those who have availability of this data are not misusing it.  It also requires businesses to report any significant data that could impact stock prices. In 2025, SEBI expanded the concept of UPSI to include information on the award or termination of non-standard orders or contracts.

4. SEBI (Mutual Funds) Regulations, 1996 

These rules apply to mutual funds operating in India. They create guidelines for the formation and management of mutual funds. They ensure that mutual funds utilize investor money in an ethical manner. SEBI modified these rules in 2025 to protect the interests of investors while also ensuring the transparency of mutual fund activities

5.SEBI (Alternative Investment Funds) Regulations, 2012

Alternative investment funds include private equity, hedge funds, and venture capital. SEBI guarantees that these funds follow rules and are available to anyone. SEBI guarantees that these funds follow rules and are available to anyone. SEBI modified the laws in 2025 to simplify the regulatory structure for these funds while also encouraging their growth and development.

6.SEBI (Research Analyst) Regulations, 2014

These limits pertain to research analysts who issue stock recommendations and offer financial counsel to the public. They establish guidelines for how researchers should conduct themselves and ensure that their findings are clear, unbiased, and devoid of conflicts of interest. To achieve a higher degree of credibility and investor protection, SEBI modified these laws in 2025, strengthening the independent status of research findings and imposing greater compliance obligations on research analysts and organizations.

7. SEBI (Investment Advisers) Regulation, 2013

These Regulations aim to establish guidelines for individuals and firms that provide investment advice to clients. To ensure that the advice given to clients is beneficial, they need advisers to be listed with SEBI and adhere to a stringent code of conduct. The regulations also mandate disclosure of any potential conflicts of interest. SEBI announced modifications in 2025 to increase the credibility of advisory services, reinforce laws to better investor protection, and guarantee a more ethical advising environment.

Amendments to SEBI Regulations (2025) 

SEBI made significant regulatory adjustments in 2025 to meet changing financial system needs and improve investor protection. Some of the following :- 

1. Expanding Same-Day Settlement (T+0) to the top 500 stocks.

2. Improving Insider Trading Regulations. 

3. Simplifying the Procedure for Rights Issues.

4. Reviewing ESG Disclosure Requirements:

   
   

Importance of SEBI in Market Integrity

SEBI ensures that the marketplace is open and trustworthy by implementing restrictions against fraud, manipulation of markets, and insider trading. SEBI carries out the following functions to establish and regulate markets: -  

1. Regulating Market Intermediaries. 

2. Enhancing Investor Education. 

3. Controlling Takeovers and Regulations. 

4. Forbidding Unfair Trade Practices. 

   
   

Conclusion

SEBI regulations promote transparency and investor protection, fostering confidence and equity in financial markets. With the most recent modifications in 2025, SEBI continues to evolve with the market, supporting new ideas while safeguarding investors' rights.

References

·        Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015, Gazette of India, Extraordinary, Part III, sec. 4 (Sept. 2, 2015).

·        Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, Gazette of India, Extraordinary, Part III, sec. 4 (Sept. 11, 2018).

·        Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, Gazette of India, Extraordinary, Part III, sec. 4 (Jan. 15, 2015).

·        Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, Gazette of India, Extraordinary, Part III, sec. 4 (Dec. 9, 1996).

·         Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, Gazette of India, Extraordinary, Part III, sec. 4 (May 21, 2012).

·        Securities and Exchange Board of India (Research Analyst) Regulations, 2014, Gazette of India, Extraordinary, Part III, sec. 4 (Sept. 1, 2014).

·        Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, Gazette of India, Extraordinary, Part III, sec. 4 (Jan. 21, 2013).

This article is authored by Achanta Ramachandra. She was among the Top 40 performers in the Quiz Competition on Mergers and Acquisitions organized by Lets Learn Law.