SEBI Act,
1992
Twenty-two chapter notes covering the foundational statute that established the Securities and Exchange Board of India — SEBI’s constitution and powers, the quasi-legislative, quasi-executive, and quasi-judicial tripartite authority, the regulatory jurisdiction over securities markets, the investigation and enforcement framework, Section 11B directions, Section 12A prohibitions, and the appellate mechanism before the Securities Appellate Tribunal. Section first, SEBI power second, SAT jurisdiction third.
SEBI — a tripartite regulatory authority for securities markets.
The Securities and Exchange Board of India Act 1992 established SEBI as a statutory body with a tripartite regulatory authority — quasi-legislative (power to make regulations), quasi-executive (power to investigate and inspect), and quasi-judicial (power to adjudicate and impose penalties). SEBI’s primary mandate under Section 11 is to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market.
These notes anchor every chapter to its statutory section. The most-tested provisions are Section 11 (SEBI’s functions), Section 11B (power to issue directions), Section 11C (investigation), Section 12 (registration of market participants), Section 12A (prohibition of fraudulent and unfair trade practices), Section 15A to 15HB (penalty provisions), Section 15I (adjudication), and Section 15Z (appeal to SAT).
Each chapter is designed to be read in twelve to fifteen minutes and to leave the reader with the statutory section, the SEBI power or prohibition, the penalty or remedy, the SAT appellate jurisdiction, and the leading authority.
How to read these notes
Start with the section.
Every chapter opens with the precise Section of the SEBI Act 1992. Read it. The most-tested provisions — Section 11, Section 11B, Section 12A, Section 15I, Section 15Z — must be cited section-and-sub-section.
Identify the power and its limits.
Every SEBI Act question reduces to one of three questions: What power does SEBI have (quasi-legislative, quasi-executive, quasi-judicial)? What are the limits on that power (natural justice, SAT appellate oversight, court review)? What is the remedy for the aggrieved party (appeal to SAT under Section 15Z, writ jurisdiction of the High Court)?
Test on the leading case.
If you can restate the holding of SEBI v. Sahara India Real Estate Corporation, SEBI v. Ajay Agarwal, or Union of India v. Securities and Exchange Board of India in two sentences, you understand the chapter. If not, return to the statutory section and rebuild from there.
All 22 chapters, in 3 groups
Sequenced through the natural structure of the subject — every chapter sits in a doctrinal cluster.SEBI’s Constitution & Mandate
Sections 1–11 — the institutional framework
The establishment of SEBI as a statutory body under Section 3. The composition of the Board under Section 4 with the Chairman and members. The SEBI Fund under Section 10. The Section 11 mandate — to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market. The tripartite regulatory authority — quasi-legislative (Sections 11 and 30), quasi-executive (Sections 11C and 11D), and quasi-judicial (Sections 15I and 15J).
Powers — Directions, Investigation & Registration
Sections 11B, 11C, 12 — the enforcement framework
Section 11B power to issue directions — the scope, the Sahara elaboration including disgorgement, the ex parte interim directions in cases of urgency, the principles of natural justice as a limit. Section 11C investigation powers including inspection of books and records, calling for information. Section 12 registration of market participants (brokers, sub-brokers, merchant bankers, portfolio managers, investment advisers, credit rating agencies, etc.) as a condition precedent to carrying on business.
Prohibitions, Penalties, Adjudication & SAT
Sections 12A, 15A–15Z — enforcement
Section 12A prohibition of fraudulent and unfair trade practices including prohibition on insider trading, prohibition on market manipulation, and prohibition on misleading statements. The penalty provisions Sections 15A to 15HB for various contraventions with quantum. Section 15I adjudication by the Adjudicating Officer. Section 15J factors for adjudication. Section 15Z appeal to the Securities Appellate Tribunal. The SAT’s composition, jurisdiction, and appellate standard. Further appeal to the High Court and Supreme Court.