Glossary · 139 terms
Regulatory & Compliance
All regulatory & compliance terms in the EquitiesIndia.com glossary — plain-English definitions written for Indian retail investors.
Agency Problem
The Agency Problem in corporate finance describes the conflict of interest that arises when an agent — such as a company's management team or promoter-directors — makes decisions on behalf of principals (shareholders) but may act in ways that serve their own interests rather than maximising shareholder value.
AIF (Alternative Investment Fund)(Alternative Investment Fund)
An Alternative Investment Fund (AIF) is a privately pooled investment vehicle regulated by SEBI under the AIF Regulations 2012, which collected funds from sophisticated investors to invest in accordance with a defined investment policy — covering assets such as private equity, venture capital, hedge funds, real estate funds, and distressed debt.
Algorithmic Trading Audit(Algo Trading Audit)
SEBI mandates that stock brokers and proprietary trading firms using algorithmic or automated order routing systems undergo an annual systems audit conducted by a SEBI-empanelled auditor to verify algorithmic controls, risk management systems and order log integrity.
Angel Investing(angel fund)
Angel investing refers to the provision of seed or early-stage capital by high-net-worth individuals — angels — to startups in exchange for equity or convertible instruments, with SEBI regulating pooled angel investment through the angel fund sub-category within Category I AIFs under the AIF Regulations, 2012.
Annual Secretarial Compliance Report(ASCR)
The Annual Secretarial Compliance Report is a certification mandated by SEBI through a circular, requiring listed entities to obtain a report from a practising Company Secretary confirming compliance with all applicable SEBI regulations, circulars, and guidelines during the financial year, and to submit it to stock exchanges within 60 days of the financial year-end.
Audit Committee(Audit and Risk Committee)
The Audit Committee is a mandatory sub-committee of the board of directors, constituted under Section 177 of the Companies Act, 2013 and SEBI LODR, responsible for overseeing financial reporting, internal controls, and auditor independence.
Benami Transactions(Benami Property)
A benami transaction is a financial arrangement in which property or assets are held by one person (the benamidar) on behalf of another (the beneficial owner), with the beneficial owner providing the consideration — a practice that is prohibited and subject to severe penalties under the Prohibition of Benami Property Transactions Act, 1988, as amended in 2016.
Beneficial Ownership(UBO)
Beneficial ownership refers to the natural person(s) who ultimately own or control a legal entity such as a company, trust, or partnership, even if formal or legal ownership is registered in the name of another individual, entity, or nominee.
Block Deal Window(block deal window)
The Block Deal Window is a dedicated trading session on NSE and BSE, held in the morning (9:15 AM to 9:50 AM) and afternoon (2:05 PM to 2:50 PM), in which large single-transaction trades of a minimum value of ₹10 crore in a listed security can be executed between counterparties at a negotiated price within a permitted band around the prevailing market price.
Board Composition(Board Structure)
Board Composition refers to the structure and mix of directors on a company's board of directors, including the balance between executive and non-executive directors, independent directors, and the statutory requirement for at least one woman director in listed companies.
BSE SME Platform(BSE SME)
The BSE SME Platform, launched in March 2012, is a dedicated stock exchange platform for Small and Medium Enterprises to raise equity capital and list their shares, with lighter listing requirements, mandatory market making, and lower compliance costs compared to the main BSE board.
Bulk Deal Reporting(bulk deal disclosure)
Bulk deal reporting is the mandatory disclosure obligation under SEBI's exchange framework requiring any entity that executes a trade in a listed security totalling 0.5% or more of the company's total equity shares in a single trading day (across all exchanges) to report the transaction to the stock exchange, which then discloses it publicly.
Business Continuity Planning (Exchanges)(BCP Exchanges India)
Business Continuity Planning (BCP) for stock exchanges, clearing corporations and depositories is a SEBI-mandated framework requiring these Market Infrastructure Institutions to maintain the capacity to sustain critical market operations during a disaster, system failure or other disruptive event with minimal downtime.
Business Responsibility and Sustainability Report (BRSR)(BRSR)
The Business Responsibility and Sustainability Report (BRSR) is a mandatory ESG disclosure framework introduced by SEBI under the LODR Regulations, requiring the top 1,000 NSE- and BSE-listed companies by market capitalisation to report quantitative and qualitative sustainability metrics aligned with the National Guidelines on Responsible Business Conduct (NGRBC).
Central KYC (CKYC)(CKYC)
Central KYC (CKYC) is a centralised repository maintained by the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) that stores the Know Your Customer (KYC) records of individuals once, allowing all regulated financial entities to access the same record without repeated documentation.
Circular Trading(wash trading)
Circular trading is a form of market manipulation in which a group of colluding entities buy and sell securities among themselves in a coordinated manner to create artificial trading volumes and a misleading impression of market activity, without genuine changes in economic ownership.
Client Code Modification(CCM)
Client Code Modification (CCM) refers to the practice of changing the client identifier on a trade after it has been executed, historically used by some brokers and dealers to transfer profitable trades to preferred clients and unprofitable trades to other clients—a practice now severely restricted by SEBI.
Companies Act 2013 Overview(Companies Act 2013)
The Companies Act, 2013 is the primary legislation governing the incorporation, regulation, and winding up of companies in India, replacing the Companies Act, 1956, with significantly strengthened provisions on corporate governance, audit, related party transactions, CSR, and minority shareholder protection.
Competition Commission of India (CCI)(CCI India)
The Competition Commission of India (CCI) is a statutory body established under the Competition Act, 2002 that regulates anti-competitive agreements, abuse of dominant position, and mergers and acquisitions in India, including mandatory pre-merger notification for combinations above prescribed thresholds.
Compliance Officer — Listed Company(listed company compliance officer)
A Compliance Officer in a listed company is a senior management professional mandated under SEBI LODR Regulations and SEBI PIT Regulations to oversee statutory filings, manage trading window procedures, maintain the structured digital database, pre-clear designated person trades, and serve as the primary point of contact with stock exchanges and SEBI.
Consent Order Framework — SEBI(SEBI consent mechanism)
The SEBI Consent Order Framework allows a person against whom enforcement action has been initiated to settle the proceedings voluntarily by paying a consent amount and agreeing to specified undertakings, without admission or denial of guilt, thereby concluding the proceedings without a formal adjudicating order.
Continuous Listing Obligations(LODR Compliance)
Continuous listing obligations for companies listed on Indian stock exchanges are prescribed under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR), covering periodic financial disclosures, corporate governance requirements, event-based disclosures, and compliance with board composition and committee formation norms on an ongoing basis throughout the company's listed tenure.
Corporate Governance Evolution (India)
India's corporate governance framework has evolved from the voluntary Birla Committee recommendations (1999) through mandatory Clause 49 of the Listing Agreement, to the comprehensive SEBI LODR Regulations (2015) and the Kotak Committee reforms (2018), steadily raising standards for board independence, disclosure, and shareholder rights.
Corporate Social Responsibility(CSR)
Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 mandates eligible Indian companies to spend at least 2% of their average net profit of the preceding three financial years on specified CSR activities through a structured board-level governance framework.
Creeping Acquisition
Creeping acquisition refers to the gradual increase in shareholding by an existing substantial shareholder (holding between 25% and 75%) in a listed company, with SEBI's Takeover Code permitting such shareholders to acquire up to five percent additional shares in any financial year without triggering a mandatory open offer obligation.
Cross-Border Securities Regulation(International Securities Regulation India)
Cross-border securities regulation in India governs the framework under which foreign investors access Indian markets and Indian investors access overseas markets, underpinned by IOSCO membership, bilateral memoranda of understanding and the FEMA-based capital account architecture.
Cybersecurity Framework (SEBI)(SEBI CSCRF)
SEBI's Cyber Security and Cyber Resilience Framework (CSCRF) 2023 mandates that Market Infrastructure Institutions and other regulated entities implement structured cybersecurity governance, risk management, technology controls and incident response capabilities proportional to their systemic importance.
Debarment(capital market ban)
Debarment is a SEBI enforcement order that prohibits an individual or entity from accessing or participating in Indian securities markets — as a trader, intermediary, director of a listed company, or in any other capacity — for a specified period or permanently, as a consequence of regulatory violations.
Demat Debit and Pledge Instruction (DDPI)(DDPI)
The Demat Debit and Pledge Instruction (DDPI) is a limited authorisation instrument introduced by SEBI in 2022 to replace the broad Power of Attorney, allowing a broker to debit securities from a client's demat account only for delivery of sold securities or to create a pledge in favour of the broker for margin purposes.
Demutualisation of Exchanges(Exchange Demutualisation India)
Demutualisation is the process by which a member-owned, mutual-structure stock exchange is converted into a shareholder-owned company with separate ownership, management, and trading rights — a transformation undergone by BSE in 2005-2007 and already accomplished at NSE's inception — aimed at eliminating conflicts between members' interests and the exchange's regulatory and commercial functions.
Depositories Act 1996(Depositories Act)
The Depositories Act, 1996 provides the legal framework for the establishment and functioning of depositories in India, enabling the dematerialisation of securities and their electronic holding and transfer, underpinning the operations of NSDL and CDSL.
Disgorgement(disgorgement order)
Disgorgement is a remedial enforcement tool by which SEBI orders a person or entity that has made gains through illegal or violative conduct in the securities market to surrender those ill-gotten profits to the regulator, with the aim of eliminating the financial incentive for regulatory violations.
Enforcement Directorate (ED)(Enforcement Directorate)
The Enforcement Directorate (ED) is a federal law enforcement and economic intelligence agency under the Ministry of Finance that enforces the Prevention of Money Laundering Act (PMLA), 2002 and the Foreign Exchange Management Act (FEMA), 1999 in India.
ESG Rating Agencies(ESG scores)
ESG rating agencies assess companies on their Environmental, Social, and Governance (ESG) performance using quantitative and qualitative criteria, with SEBI mandating disclosure through the Business Responsibility and Sustainability Report (BRSR) to provide standardised data for ESG analysis in the Indian context.
ESG Score (BRSR Framework)(BRSR ESG rating)
An ESG Score in the Indian listed company context quantifies a company's performance on Environmental, Social, and Governance dimensions using disclosures made under SEBI's Business Responsibility and Sustainability Report (BRSR) framework, which became mandatory for the top 1,000 listed companies by market capitalisation from FY2022-23.
Exchange Listing Requirements(IPO Eligibility Criteria India)
Exchange listing requirements in India for initial public offerings (IPOs) are governed primarily by the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations), which prescribe eligibility criteria covering minimum post-issue paid-up capital, profitability or net tangible assets track record, minimum public offer size, and the mandatory book-building or fixed-price process for price discovery.
Exchange Surveillance Department(NSE surveillance)
The Exchange Surveillance Department at NSE and BSE is the real-time market monitoring function that tracks trading patterns across equity, derivatives, and currency segments for potential price manipulation, circular trading, front-running, and other market abuses, and refers suspicious cases to SEBI for investigation.
Financial Intelligence Unit – India (FIU-IND)(FIU-IND)
The Financial Intelligence Unit – India (FIU-IND) is the national agency under the Department of Revenue, Ministry of Finance, responsible for receiving, processing, and disseminating suspicious transaction reports (STRs) and other financial intelligence to combat money laundering and terrorist financing.
Foreign Exchange Management Act (FEMA)(FEMA 1999)
The Foreign Exchange Management Act (FEMA), 1999 is the primary legislation governing foreign exchange transactions and cross-border capital flows in India, replacing the Foreign Exchange Regulation Act (FERA) with a liberalised, civil penalty-based framework aligned with current account convertibility.
Front Running(front-running)
Front running is the illegal practice where a broker, dealer, or fund manager executes trades in a security for their own or a related account based on advance knowledge of pending client orders that are large enough to move the market price, thereby profiting at the client's expense.
GIFT City IFSC(GIFT IFSC)
GIFT City IFSC (Gujarat International Finance Tec-City — International Financial Services Centre) is India's dedicated financial district in Gandhinagar, Gujarat, operating under a separate regulatory regime administered by the International Financial Services Centres Authority (IFSCA), designed to attract global financial businesses to book and manage international transactions from Indian soil.
Graded Surveillance Measure (GSM) — Deep Dive(GSM framework)
The Graded Surveillance Measure (GSM) is a SEBI-mandated surveillance framework applied by NSE and BSE to stocks with weak fundamentals or abnormal price movements, restricting their trading to a weekly trade-for-trade settlement and progressively increasing collateral requirements as the stock remains on the list.
Independent Director(ID)
An Independent Director is a non-executive director of a listed company who has no material or pecuniary relationship with the company or its promoters, and is appointed to provide objective oversight of management and protect the interests of minority shareholders.
Information Asymmetry(Insider Advantage)
Information asymmetry in financial markets refers to the condition where one party in a transaction — typically an insider, promoter, or institutional investor — possesses material, non-public information that gives them a systematic advantage over the counterparty, distorting price discovery and undermining market fairness.
Insider Trading(Insider Trading Prohibition)
Insider trading referred to the buying or selling of securities of a listed company by a person who possessed material, non-public information about the company (Unpublished Price Sensitive Information), which was prohibited under the SEBI (Prohibition of Insider Trading) Regulations, 2015.
Investor Awareness Programs(Investor Education Programs)
SEBI-mandated Investor Awareness Programs are structured financial literacy and market education initiatives funded through a dedicated Investor Protection and Education Fund and implemented by exchanges, intermediaries and AMFI to improve investor knowledge, reduce mis-selling and enhance complaint awareness.
Investor Awareness Programs (SEBI Funded)(SEBI Investor Workshops)
SEBI-funded investor awareness programmes are structured educational initiatives conducted by recognised stock exchanges, depositories, and registered intermediaries under SEBI directives, reaching urban, semi-urban, and rural investors through physical workshops, online modules, school and college outreach, and mass media campaigns funded from SEBI's investor education budget and exchange IPF corpus.
Investor Charter(Investor Charter SEBI)
The Investor Charter is a SEBI-mandated document that every registered intermediary must display on its website and at client-facing locations, detailing the rights, obligations, do's and don'ts, and grievance redressal mechanisms available to investors dealing with that intermediary.
Investor Education and Protection Fund (IEPF)(IEPF Authority)
The Investor Education and Protection Fund (IEPF) is a fund established under Section 125 of the Companies Act 2013 into which unclaimed dividends, matured deposits, share application money, and the underlying equity shares of investors who have not claimed dividends for seven consecutive years are transferred by listed companies.
Investor Grievance Redressal(SCORES)
Investor Grievance Redressal refers to the mechanisms and authorities available to investors in India to resolve complaints against listed companies, brokers, mutual funds, and other market intermediaries, including SEBI's SCORES platform, exchange arbitration, and the SEBI Complaint Redressal System.
Investor Protection Fund(IPF)
Investor Protection Fund (IPF) was a fund maintained by stock exchanges in India to compensate investors who suffered financial losses due to the failure or default of a SEBI-registered trading member (broker), providing a defined level of compensation from exchange-administered resources where recovery from the defaulting member was insufficient.
Kotak Committee Recommendations on Corporate Governance(Uday Kotak Committee)
The Kotak Committee on Corporate Governance, chaired by Uday Kotak and constituted by SEBI in 2017, submitted a landmark report with 81 recommendations covering board composition, audit committee practices, related party transactions, subsidiary governance, and disclosures, most of which were subsequently incorporated into SEBI LODR Regulations.
Layering and Spoofing(spoofing)
Layering and spoofing are manipulative high-frequency trading techniques where a trader places large quantities of genuine-looking orders on one side of the order book with no intention of executing them, creating a false impression of supply or demand to move prices, before cancelling those orders and trading on the opposite side at the artificially influenced price.
LEI (Legal Entity Identifier)(LEI code)
A Legal Entity Identifier (LEI) is a 20-character alphanumeric code assigned to legal entities participating in financial transactions, enabling unique, globally standardised identification of companies and organisations in financial markets.
Listing Agreement(LODR)
A Listing Agreement is the formal contract between a company and a stock exchange under which the company agrees to comply with the exchange's rules, SEBI's disclosure obligations, and corporate governance norms as a condition of having its securities traded on that exchange.
LODR (Listing Obligations and Disclosure Requirements)(Listing Obligations)
LODR refers to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which prescribed the obligations of listed companies regarding continuous disclosures, corporate governance practices, investor relations, and the conditions of their listing agreement with stock exchanges.
Market Abuse(market manipulation)
Market abuse encompasses illegal practices in financial markets that unfairly advantage certain participants at the expense of others, including insider trading, market manipulation, and dissemination of false or misleading information, all of which undermine market integrity and investor confidence.
Market Abuse Regulation (Indian Framework)(Market Abuse India)
India's market abuse regulatory framework comprises three interlocking SEBI regulations — the PFUTP Regulations, the PIT Regulations and the SAST Regulations — that collectively prohibit manipulative trading, insider dealing and coercive takeover conduct in Indian securities markets.
Market Infrastructure Institution (MII Detailed)(Market Infrastructure Institution)
A Market Infrastructure Institution (MII) under SEBI's regulatory framework encompasses recognised stock exchanges, clearing corporations, and depositories — the three types of entities forming the critical infrastructure of India's securities market — each subject to specialised governance, net worth, technology, and ownership requirements that distinguish them from ordinary SEBI-regulated intermediaries.
Market Infrastructure Institutions (MII)(MII)
Market Infrastructure Institutions (MIIs) are stock exchanges, depositories, and clearing corporations that form the core operational backbone of the Indian securities market, and are subject to enhanced governance and ownership norms prescribed by SEBI given their systemic importance.
Material Event Disclosure(Event Disclosure SEBI)
Material event disclosure obligations under Schedule III of the SEBI LODR Regulations require listed companies to promptly inform stock exchanges of specified corporate developments — with outcome-based events requiring disclosure within 30 minutes of the board meeting ending, and other significant events requiring disclosure within 24 hours of their occurrence.
Minimum Public Shareholding (MPS)(MPS)
Minimum Public Shareholding (MPS) is the SEBI-mandated requirement that all listed companies in India must maintain at least 25% of their total shareholding with public (non-promoter) shareholders, ensuring a minimum level of dispersed ownership and market liquidity.
National Company Law Tribunal (NCLT)(NCLT India)
The National Company Law Tribunal (NCLT) is a quasi-judicial body established under the Companies Act, 2013 that adjudicates on corporate law disputes including mergers and amalgamations, insolvency proceedings under IBC, oppression and mismanagement, and winding-up petitions, replacing the erstwhile Company Law Board (CLB).
National Financial Reporting Authority(NFRA)
The National Financial Reporting Authority (NFRA) is an independent regulatory body constituted under Section 132 of the Companies Act, 2013 to oversee auditing and accounting standards and to investigate and take disciplinary action against auditors of certain classes of companies.
Nomination and Remuneration Committee(NRC)
The Nomination and Remuneration Committee (NRC) is a mandatory board sub-committee under the Companies Act, 2013 and SEBI LODR that oversees the appointment, remuneration, and performance evaluation of directors, key managerial personnel, and senior management.
NSE Emerge Platform(NSE Emerge)
NSE Emerge is the National Stock Exchange's SME listing platform, launched in September 2012, providing Small and Medium Enterprises with a pathway to list equity shares on the NSE ecosystem, with SEBI-approved lighter regulations, a minimum lot size of ₹1 lakh, and a mandatory market-making obligation.
NSE Governance and Co-location Controversy(NSE colo controversy)
The NSE co-location controversy (2015-2019) refers to allegations that certain high-frequency trading firms received preferential access to NSE's matching engine through undisclosed secondary connections at the exchange's co-location facility, raising fundamental governance concerns about Market Infrastructure Institutions.
Ombudsman for Securities Market(Securities Ombudsman India)
An Ombudsman for the Securities Market is a proposed independent redressal authority that would provide retail investors with a low-cost, accessible forum to resolve complaints against SEBI-regulated intermediaries, drawing on the ombudsman model successfully deployed in banking and insurance sectors.
Online Dispute Resolution — SEBI SMART ODR(SMART ODR)
SEBI's Online Dispute Resolution (ODR) platform, launched as SMART ODR in 2023, provides investors with an online mechanism to resolve disputes with SEBI-registered intermediaries through conciliation and arbitration, offering a faster, cost-effective, and technology-enabled alternative to traditional legal forums.
Open Offer Pricing Methodology(open offer price)
Under Regulation 8 of the SEBI (SAST) Regulations 2011, the open offer price must be the highest of several benchmarks including the volume-weighted average market price for 60 trading days prior to the public announcement, negotiated price, and highest price paid by the acquirer during the 52 weeks before the announcement.
Penny Stock (SEBI Definition)(penny stock)
In the Indian regulatory context, SEBI and exchanges identify penny stocks through surveillance frameworks as shares trading at very low absolute prices—typically below ₹10—with low market capitalisation, thin volumes, and a history of price manipulation, subjecting them to enhanced scrutiny and trading restrictions.
Pledge Disclosure
Pledge disclosure refers to the mandatory reporting obligation under SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, requiring promoters and promoter group entities to disclose the creation, modification, or revocation of any pledge or encumbrance on their shares in a listed company.
Pledging Under SEBI Framework(pledge collateral SEBI 2020)
Pledging under the SEBI framework refers to the regulatory structure governing the creation of a pledge over demat securities as collateral for loans or margin obligations, following SEBI's 2020 circular that fundamentally restructured how pledges are created and transferred, replacing the previous Power of Attorney-based system.
PMLA (Prevention of Money Laundering)(PMLA)
The Prevention of Money Laundering Act, 2002 (PMLA) is the primary Indian legislation targeting money laundering, requiring financial intermediaries including brokers, mutual funds, and portfolio managers to implement Know Your Customer (KYC), transaction monitoring, and suspicious transaction reporting frameworks to prevent the use of financial markets for laundering proceeds of crime.
PMS (Portfolio Management Service)(Portfolio Management Service)
A Portfolio Management Service (PMS) is a regulated investment service in India under SEBI's PMS Regulations, whereby a SEBI-registered portfolio manager managed a customised portfolio of securities on behalf of each individual client, with a minimum investment of Rs 50 lakh per client.
Power of Attorney (Demat)(PoA demat)
A Power of Attorney (PoA) in the demat context is a legal document through which a demat account holder authorises their broker to execute certain transactions in the demat account on the investor's behalf, including sale of securities for delivery obligations. Following SEBI's 2020 reforms, the broad PoA has been replaced by the more limited DDPI instrument.
Prevention of Fraudulent and Unfair Trade Practices (PFUTP)(PFUTP Regulations)
The SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 — commonly known as PFUTP — is the primary enforcement framework through which SEBI prosecutes market manipulation, front-running, misleading disclosures, and other fraudulent conduct in Indian securities markets.
Prevention of Money Laundering Act (Detailed)(PMLA)
The Prevention of Money Laundering Act, 2002 (PMLA) is India's primary anti-money laundering legislation that obligates financial institutions, market intermediaries, and other reporting entities to conduct Know Your Customer (KYC) verification, maintain records, and report suspicious transactions to the Financial Intelligence Unit-India (FIU-IND).
Private Equity(PE)
Private equity (PE) refers to professionally managed investment funds that acquire significant or controlling stakes in established, profitable companies to drive operational improvements and value creation before exiting via IPO or strategic sale, regulated in India under SEBI's AIF framework as Category II AIFs.
Promoter Reclassification(promoter to public reclassification)
Promoter reclassification is the regulatory process by which a person or entity classified as a 'promoter' of a listed company applies to be reclassified as a 'public shareholder,' typically when their shareholding and involvement in management have reduced to levels where promoter classification is no longer appropriate.
Regulatory Sandbox (SEBI Detailed)(SEBI Sandbox)
SEBI's Regulatory Sandbox is a controlled testing environment that allows eligible entities — including SEBI-registered intermediaries and fintech firms — to live-test innovative financial products, services or technologies within defined boundaries and for a limited period without being subject to the full regulatory framework.
Related Party Transaction Approval (SEBI)(RPT SEBI Framework)
SEBI's Related Party Transaction (RPT) framework under the LODR Regulations requires listed companies to obtain prior approval from the Audit Committee for all RPTs, and shareholder approval through an ordinary or special resolution for material RPTs, with enhanced restrictions introduced through 2021-2022 amendments that include omnibus approval ceilings and mandatory independent director approval thresholds.
Related Party Transaction Committee(RPT Committee)
A Related Party Transaction (RPT) Committee is a sub-committee of the board, typically drawn from the audit committee, responsible for reviewing and approving transactions between a company and its related parties to prevent conflicts of interest and ensure fair dealing.
Scheme of Arrangement (SEBI Role)(SEBI Scheme Approval)
SEBI's role in schemes of arrangement — mergers, demergers, amalgamations, and capital reductions — involves issuing a No-Objection Letter (NOC) or observation letter after reviewing the scheme for compliance with securities law, investor protection standards, and disclosure requirements before the scheme is filed with the National Company Law Tribunal (NCLT) for approval.
SCORES (SEBI Complaints)(SCORES)
SCORES (SEBI Complaint Redress System) is SEBI's centralised online platform through which investors can register complaints against listed companies, registered intermediaries, and other SEBI-regulated entities, and track the resolution status of their complaints in real time.
SEBI (Alternative Dispute Resolution)(SEBI ADR)
SEBI's Alternative Dispute Resolution (ADR) framework encompasses mediation, conciliation and arbitration mechanisms available to investors and market intermediaries as faster, cost-effective alternatives to litigation for resolving securities market disputes.
SEBI (Alternative Investment Funds) Regulations(AIF Regulations 2012)
The SEBI (Alternative Investment Funds) Regulations 2012 govern the registration and regulation of AIFs in India under three categories — Category I (venture capital, SME, social venture, infrastructure), Category II (private equity, debt funds), and Category III (hedge funds, complex strategies) — with distinct regulatory treatment for each.
SEBI (Intermediaries) Amendment(SEBI Intermediaries Regulations)
The SEBI (Intermediaries) Regulations represent SEBI's efforts to consolidate registration, conduct, compliance and disciplinary norms for various categories of capital market intermediaries into a more unified framework, replacing the earlier patchwork of separate registration and code of conduct rules.
SEBI (Investment Advisers) Regulations(SEBI IA Regulations)
SEBI (Investment Advisers) Regulations, 2013 established the regulatory framework for individuals and entities providing investment advice to clients in India, requiring registration with SEBI, adherence to a fiduciary standard, segregation of advisory and distribution activities, and maintenance of defined qualifications and net worth requirements.
SEBI (Listing Obligations and Disclosure Requirements) — Detailed(SEBI LODR)
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) form the primary compliance framework for listed entities in India, mandating continuous disclosure of material information, board governance standards, related party transaction thresholds, and periodic regulatory filings to stock exchanges.
SEBI (Prohibition of Insider Trading) Regulations — Connected Person and Trading Plan(PIT Regulations 2015)
SEBI (Prohibition of Insider Trading) Regulations, 2015 prohibit trading in securities of a company by persons in possession of unpublished price-sensitive information (UPSI), define the concept of a connected person and insider, and permit structured trading plans as an exception for designated persons.
SEBI (Prohibition of Insider Trading) Regulations 2015(PIT Regulations 2015)
The SEBI (Prohibition of Insider Trading) Regulations 2015 establish the comprehensive legal framework to prevent trading in securities of listed companies by persons who have access to unpublished price sensitive information, replacing the earlier 1992 regulations with more modern and extensive provisions.
SEBI (Research Analysts) Regulations(SEBI RA Regulations)
SEBI (Research Analysts) Regulations, 2014 established the framework for registration, conduct, and obligations of individuals and entities publishing investment research on securities, requiring SEBI registration, conflict-of-interest management, and disclosure standards to ensure research integrity.
SEBI (Substantial Acquisition of Shares and Takeovers) Regulations(SAST Regulations 2011)
The SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011 (SAST Regulations) govern the acquisition of shares and voting rights in listed companies beyond specified thresholds, mandating public announcements, open offers to shareholders, and disclosures to ensure transparency and minority shareholder protection.
SEBI Act 1992 Overview(SEBI Act)
The Securities and Exchange Board of India Act, 1992 is the primary legislation establishing SEBI as an autonomous statutory body with wide powers to protect investor interests, promote the development of the securities market, and regulate market intermediaries and listed companies.
SEBI Adjudication Process(SEBI AO proceedings)
The SEBI Adjudication Process is the quasi-judicial enforcement mechanism through which SEBI determines and levies monetary penalties for violations of the SEBI Act, securities laws, and regulations, conducted by a Adjudicating Officer (AO), with the option to appeal the AO's order to the Securities Appellate Tribunal (SAT).
SEBI Advisory Committees(PMAC)
SEBI constitutes various advisory committees comprising market participants, academics, and independent experts to provide domain-specific recommendations on policy development, including the Primary Market Advisory Committee (PMAC) and the Secondary Market Advisory Committee (SMAC) among others.
SEBI Annual Report(SEBI Annual Report)
SEBI's Annual Report is a comprehensive statutory document published each year covering market developments, regulatory initiatives, enforcement statistics, investor education activities, and financial accounts of SEBI, serving as the primary source of authoritative data on the Indian securities market.
SEBI Buyback of Securities Regulations(Buyback Regulations 2018)
The SEBI (Buyback of Securities) Regulations 2018 govern the process by which a listed company may repurchase its own shares from the market, specifying the permissible methods, size limits, pricing norms, and disclosure requirements to protect public shareholders.
SEBI Credit Rating Agencies Regulations(CRA Regulations)
The SEBI (Credit Rating Agencies) Regulations 1999 regulate entities that assess and assign credit ratings to debt instruments in India, governing their registration, methodology standards, governance norms, and obligations to prevent conflicts of interest in the rating process.
SEBI Delisting Regulations 2021(Delisting Regulations 2021)
The SEBI (Delisting of Equity Shares) Regulations 2021 govern the voluntary and compulsory delisting of equity shares from stock exchanges, introducing a revised reverse book building process, floor price methodology, and counter-offer mechanism to streamline delistings and enhance shareholder protection.
SEBI Depositories and Participants Regulations(DP Regulations)
The SEBI (Depositories and Participants) Regulations 2018 govern the registration, obligations, and conduct of depositories (NSDL and CDSL) and their registered participants, ensuring the safe custody and electronic transfer of securities held in dematerialised form.
SEBI Enforcement Track Record
SEBI's enforcement actions have grown significantly in scope and severity — from primarily adjudication orders and disgorgement of illegal gains in insider trading cases to debarment of market participants, attachment of properties, and coordination with ED and CBI in serious cases — with annual penalties running into thousands of crores.
SEBI Formation 1992(SEBI Act 1992)
The Securities and Exchange Board of India was established as a statutory authority under the SEBI Act 1992, created in the aftermath of the Harshad Mehta scam to provide a dedicated, empowered regulator for India's securities markets replacing the earlier advisory body that lacked enforcement powers.
SEBI FPI Regulations 2019(FPI Regulations 2019)
The SEBI (Foreign Portfolio Investors) Regulations 2019 provide the regulatory framework for overseas investors to access Indian capital markets, streamlining the earlier FII and sub-account regime into a single, risk-based FPI registration system.
SEBI ICDR Regulations(ICDR Regulations)
The SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018 govern every public issuance of equity and debt securities in India, prescribing eligibility conditions, disclosure standards, allotment procedures, and post-listing obligations for issuers.
SEBI Informal Guidance(SEBI guidance scheme)
SEBI's Informal Guidance Scheme allows market participants to seek SEBI's interpretive view on how specific SEBI regulations apply to a proposed transaction or activity, providing regulatory clarity before execution to reduce compliance uncertainty for issuers, intermediaries, and investors.
SEBI Innovation Sandbox(SEBI Sandbox)
The SEBI Innovation Sandbox, launched in 2019, is a testing environment that allows FinTech companies and technology innovators to test financial market solutions using anonymised historical data provided by SEBI-regulated entities, without the requirement to obtain regulatory licences during the testing phase.
SEBI Intermediary Inspection(SEBI broker inspection)
SEBI Intermediary Inspection refers to periodic and thematic examinations conducted by SEBI or stock exchanges on registered intermediaries — including brokers, depositories, mutual funds, investment advisers, and merchant bankers — to verify compliance with applicable regulations, registration conditions, and investor protection norms.
SEBI Intermediary Registration(SEBI registration)
SEBI intermediary registration refers to the mandatory licensing regime under which various categories of capital market participants — including stockbrokers, depository participants, investment advisers, research analysts, portfolio managers, and alternative investment funds — must obtain a certificate of registration from SEBI before commencing regulated activities.
SEBI Investigation Wing(SEBI investigations)
The SEBI Investigation Wing is the post-surveillance deep investigation function within SEBI that conducts detailed inquiry into cases of suspected securities law violations — including insider trading, price manipulation, and fraudulent schemes — after receiving references from exchange surveillance, investor complaints, or suo motu intelligence gathering.
SEBI Investor Education Fund(SEBI Education Fund)
SEBI maintains a dedicated budget allocation and expenditure framework for investor education and awareness, funded through regulatory fees, fines, and disgorgement, which finances a range of initiatives including investor awareness workshops, online education portals, NISM certification programmes, exchange-conducted seminars, and research on retail investor behaviour.
SEBI Investor Protection Fund(Exchange Investor Protection Fund)
The Investor Protection Fund (IPF) at Indian stock exchanges is a corpus maintained by recognised exchanges under SEBI regulations to compensate investors in cases where a trading member defaults and fails to fulfil obligations toward clients, with the maximum compensation from exchange IPFs set at Rs 25 lakh per investor per defaulting member.
SEBI Mutual Funds Regulations 1996(MF Regulations 1996)
The SEBI (Mutual Funds) Regulations 1996 form the foundational legal framework for the mutual fund industry in India, governing the establishment, operation, investment norms, and winding up of mutual funds, and have been amended more than fifty times to reflect evolving market realities.
SEBI PFUTP Regulations 2003(PFUTP 2003)
The SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations 2003 are the primary statutory instrument under which SEBI prosecutes market manipulation, price rigging, misleading statements, and related offences in the Indian securities market.
SEBI REIT Framework(REIT Regulations India)
SEBI introduced the Real Estate Investment Trust regulatory framework in September 2014 with subsequent amendments in 2019, 2021, and 2023, enabling the listing of pooled investment vehicles that own income-generating commercial real estate and must distribute at least 90 percent of net distributable cash flows to unitholders.
SEBI Settlement Mechanism(consent order)
The SEBI Settlement Mechanism, governed by the SEBI (Settlement Proceedings) Regulations 2018 and formerly known as the 'consent order' framework, allows entities facing SEBI enforcement proceedings to settle alleged violations by paying settlement amounts and undertaking remedial actions without admission of guilt.
SEBI Stock Brokers Regulations(Stock Broker Regulations 1992)
The SEBI (Stock Brokers) Regulations 1992 govern the registration, capital requirements, operational standards, and conduct obligations of stockbrokers and sub-brokers operating on recognised stock exchanges in India.
SEBI Whole Time Member Orders(SEBI WTM order)
SEBI Whole Time Member (WTM) Orders are quasi-judicial decisions issued by a Whole Time Member of the SEBI Board under Sections 11, 11B, 11(4), and related provisions of the SEBI Act, addressing serious market violations, imposing prohibitions and directions, and often setting regulatory precedents that guide market conduct.
Securities Appellate Tribunal (SAT)(SAT)
The Securities Appellate Tribunal (SAT) is a quasi-judicial body established under Section 15K of the SEBI Act 1992 to hear and dispose of appeals against orders passed by SEBI, the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA).
Securities Contracts Regulation Act(SCRA)
The Securities Contracts (Regulation) Act, 1956 (SCRA) is the foundational legislation governing stock exchanges, contracts in securities, and the listing of securities in India, providing the statutory basis for recognising and regulating stock exchanges and trading in securities.
Securities Market Literacy Initiatives(Securities Literacy India)
Securities market literacy in India is advanced through a multi-institutional framework involving SEBI, NISM, NSE, BSE, NSDL, CDSL, AMFI, and the National Centre for Financial Education (NCFE), which collectively develop curriculum, conduct assessments, administer certifications, and produce educational content aimed at equipping retail investors, students, and intermediaries with accurate knowledge of securities markets.
Serious Fraud Investigation Office (SFIO)(SFIO India)
The Serious Fraud Investigation Office (SFIO) is a multi-disciplinary government agency under the Ministry of Corporate Affairs (MCA) that investigates complex corporate fraud, financial crimes, and violations of the Companies Act, 2013 involving large listed and unlisted companies.
Shareholder Activism(proxy voting)
Shareholder activism is the use of equity ownership rights by institutional investors or organised shareholder groups to influence corporate governance, strategy, executive compensation, or ESG practices, increasingly formalised in India through SEBI's Stewardship Code and the activities of domestic proxy advisory firms.
Short Selling Regulations (India)(Short Selling Framework India)
India permits short selling in equity markets for all classes of investors — retail, domestic institutional and foreign — within a framework that requires disclosure, prohibits naked short selling and links short positions to the Securities Lending and Borrowing (SLB) mechanism.
Sovereign Gold Bond vs Gold ETF vs Physical Gold(SGB vs Gold ETF)
Sovereign Gold Bonds (SGBs), Gold ETFs, and physical gold are three distinct instruments through which investors can gain exposure to gold prices, each governed by different regulatory frameworks, carrying different holding costs, tax treatments, and risk profiles in the Indian market.
Stewardship Code(SEBI Stewardship Code)
The SEBI Stewardship Code, issued in 2019, establishes principles for institutional investors — including mutual funds, insurance companies, and alternative investment funds — to actively exercise their ownership rights in investee companies, including voting on shareholder resolutions, engaging with management, and disclosing their voting policies and records.
Stock Exchange Governance Framework(Exchange Board Governance)
Stock exchange governance in India is governed by SEBI's Market Infrastructure Institutions (MII) circular framework, which mandates that recognised stock exchanges maintain a board with a majority of independent directors, at least one Public Interest Director (PID) nominated by SEBI, fit-and-proper criteria for all directors, and conflict-of-interest restrictions designed to protect market integrity over commercial interests.
Stock Exchange Recognition by SEBI(MII framework)
SEBI grants recognition to stock exchanges under Section 4 of the Securities Contracts (Regulation) Act, 1956 (SCRA) after examining the exchange's governance structure, rules, bye-laws, membership criteria, listing conditions, and financial resources, classifying stock exchanges as Market Infrastructure Institutions (MIIs).
Stock Exchange Surveillance(Market Surveillance)
Stock exchange surveillance refers to the real-time and post-trade monitoring systems operated by stock exchanges (BSE and NSE) and SEBI to detect unusual trading patterns, potential market manipulation, insider trading, and abnormal price or volume movements in listed securities.
Stock Exchange Technology Governance(Exchange Technology Fairness)
Stock exchange technology governance encompasses the SEBI-mandated frameworks that ensure fairness, transparency and non-discrimination in how exchanges provide and manage technology infrastructure, particularly co-location services, algorithmic access, data feeds and market connectivity.
Structured Digital Database (SDD)(SDD)
A Structured Digital Database (SDD) is a mandatory digital record-keeping system that listed companies and market intermediaries must maintain under the SEBI (Prohibition of Insider Trading) Regulations 2015 to log all persons with whom Unpublished Price Sensitive Information is shared, along with details of the sharing.
T+0 Settlement(T+0)
T+0 settlement is a same-day settlement mechanism for equity trades in India, introduced by SEBI as an optional beta facility in March 2024, under which the buyer receives shares and the seller receives funds on the same day the trade is executed, eliminating overnight counterparty and settlement risk.
Takeover Code (SEBI SAST)(Takeover Code)
The SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 — commonly referred to as the Takeover Code — governs the acquisition of shares and control in listed Indian companies, prescribing mandatory open offer obligations when an acquirer crosses specified shareholding thresholds.
Trading Window Closure(trading window)
Trading window closure refers to the restriction imposed on designated persons and their immediate relatives from trading in shares of a listed company during periods when UPSI is likely to be in their possession, as mandated under the SEBI (Prohibition of Insider Trading) Regulations 2015.
Uday Kotak Committee Implementation — CMD Separation(CMD separation SEBI)
The implementation of Uday Kotak Committee recommendations through SEBI LODR amendments required listed companies in the top 500 by market capitalisation to separate the roles of Chairperson and Managing Director/CEO, ensuring independent board oversight separate from executive management.
UPSI (Unpublished Price Sensitive Information)(Unpublished Price Sensitive Information)
UPSI, or Unpublished Price Sensitive Information, was information relating to a listed company or its securities that was not generally available to the public and which, if published, was reasonably expected to materially affect the price of the company's securities.
Venture Capital(VC)
Venture capital (VC) is a form of private funding provided by professional investment firms to early- and growth-stage companies with high scalability potential, regulated in India under SEBI's Alternative Investment Funds (AIF) framework as Category I AIFs, with investments made across funding stages from seed to pre-IPO.
Whistle Blower Policy(Vigil Mechanism)
A Whistle Blower Policy is a governance mechanism mandated under SEBI LODR and the Companies Act that enables employees, directors, and stakeholders to report genuine concerns about unethical behaviour, fraud, or violations of the company's code of conduct without fear of retaliation.