A government resolution first, an Act afterwards: how SEBI became a statutory body

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A government resolution first, an Act afterwards: how SEBI became a statutory body

Background

The Securities and Exchange Board of India (SEBI) did not begin with a law of its own. SEBI was constituted as a non-statutory body on April 12, 1988 through a resolution of the Government of India. It was established as a statutory body in the year 1992, and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992. The preamble of SEBI describes its basic functions as protecting the interests of investors in securities and promoting the development of, and regulating, the securities market. SEBI also lists the Securities Appellate Tribunal (SAT) among the institutions in its own structure.

First constituted as: A non-statutory body, by a resolution of the Government of India, on April 12, 1988 Statutory under: Securities and Exchange Board of India Act, 1992 (15 of 1992) Act came into force: January 30, 1992

Why it matters for exams: The durable facts are the two stages: a non-statutory body created by a resolution of the Government of India, and then a statutory body under the Securities and Exchange Board of India Act, 1992, with a preamble duty to protect the interests of investors in securities.

Kerala PSCUPSCSSCBank

28 October 2026 Source: Securities and Exchange Board of India

In plain words

SEBI Securities and Exchange Board of India — The regulator of the securities market in India.

SAT Securities Appellate Tribunal — A tribunal listed by SEBI in its own institutional structure.

Non-statutory body A body with no Act of Parliament behind it — It exists by an executive decision and not by a law.