SEBI worked as a non-statutory body for four years before its own Act gave it legal teeth

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SEBI worked as a non-statutory body for four years before its own Act gave it legal teeth

Background

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. 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 the Securities and Exchange Board of India describes its basic functions as 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. That single sentence is the source of the regulator's three standing jobs: investor protection, market development and market regulation.

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

Why it matters for exams: Examiners like the gap between SEBI's 1988 creation by resolution and the 1992 Act, because candidates usually remember only one of the two dates.

Kerala PSCUPSC

19 October 2026 Source: Securities and Exchange Board of India

In plain words

Non-statutory body Non-statutory body — A body created by an executive order or resolution rather than by an Act of a legislature.

Securities market Securities market — The market in which shares, bonds and similar instruments are issued and traded.

Preamble Preamble — The opening statement of a law that sets out its purpose.