V3I5P95

Role of SEBI Regulations in Protecting Retail Investors

Shravana S M.^1*, Dr. Kanchan G. Rajput²

Abstract

The Securities and Exchange Board of India (SEBI) plays a crucial role in protecting retail investors and ensuring the proper functioning of the Indian capital market. SEBI is the main regulatory authority that creates rules and guidelines to maintain fairness, transparency, and efficiency in the securities market. These regulations help control unfair practices like insider trading, market manipulation, misleading ads, and fraudulent investment schemes that mainly impact small and inexperienced investors. By requiring strict disclosure norms, SEBI makes sure that companies, mutual funds, and other market participants provide accurate, complete, and timely information. This transparency helps retail investors understand the risks involved and make informed investment choices.

Besides market regulation, SEBI places great importance on investor protection and education. It regularly runs investor awareness programs to boost financial literacy and help retail investors know their rights and responsibilities. SEBI has also set up effective complaint resolution mechanisms, such as the SCORES platform, which allows investors to raise complaints against companies, brokers, and other intermediaries while ensuring timely resolution. Regulations concerning IPOs, mutual funds, stock exchanges, and market intermediaries are designed to reduce risk, improve accountability, and protect investors from unethical practices. Through ongoing monitoring, strict enforcement of rules, and investor-friendly initiatives, SEBI acts as a watchdog that builds trust among retail investors and encourages their safe and confident participation in the Indian financial market.

Keywords:

SEBI, Retail Investors, Investor Protection, Capital Market Regulation, Transparency, Disclosure Norms, Market Surveillance, Insider Trading, Grievance Redressal, Investor Education, Mutual Fund Regulations, IPO Regulations, Financial Literacy