SEBI began as a non-statutory body by resolution and became a statutory regulator by Act

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SEBI began as a non-statutory body by resolution and became a statutory regulator by Act

Background

India's securities market is in the news this week, with the Centre clearing the strategic sale of a majority stake in IDBI Bank; the regulator of that market has a two-step origin worth remembering.
The Securities and Exchange Board of India 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 came into force on January 30, 1992.
The Act is numbered 15 of 1992.
The Preamble describes the basic functions of the Board as protecting the interests of investors in securities and promoting the development of, and regulating, the securities market and matters connected with or incidental to it.
Appeals against the Board's orders lie to the Securities Appellate Tribunal, which the regulator lists among the bodies in its framework.

Constituted as non-statutory body: April 12, 1988 SEBI Act came into force: January 30, 1992 Act number: 15 of 1992 Appellate body: Securities Appellate Tribunal

Why it matters for exams: The two dates in SEBI's origin — the 1988 resolution and the 1992 Act coming into force — are a favourite distinction in banking and PSC papers.

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16 October 2026 Source: Securities and Exchange Board of India — About SEBI

In plain words

SEBI Securities and Exchange Board of India — The statutory regulator of India's securities market.

Statutory body — A body created by an Act of the legislature rather than by an executive decision.

SAT Securities Appellate Tribunal — The tribunal that hears appeals against orders of the securities regulator.