SEBI has proposed a uniform 30-day time lag for sharing and using stock price data for educational purposes. This move aims to prevent “unregistered advisors” (finfluencers) from offering real-time trading tips under the guise of education. The new proposal seeks to fix this with a standard 30-day rule.

About

• 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 (15 of 1992) came into force on January 30, 1992.
• SEBI is under the supervision of the Ministry of Finance
• SEBI’s mandate, as stated in the SEBI Act, 1992, is to protect investor interests, promote development, and regulate the securities market.
• SEBI performs three regulatory roles:
  • Quasi-legislative (framing regulations)
  • Quasi-executive (implementation, inspection, enforcement)
  • Quasi-judicial (adjudication and penalties)
• SEBI derives powers not only from the SEBI Act, 1992, but also from:
• Securities Contracts (Regulation) Act, 1956
• Depositories Act, 1996
• Companies Act, 2013
• SEBI undertakes investor protection measures, including:
• Investor education and financial literacy
• Grievance redressal mechanisms
• SEBI contributes to global securities regulation as a member of the IOSCO Board and its policy and standard-setting committees.

Functions of SEBI

• Protect investors’ interests in the securities market.
• Regulate and develop the securities and capital markets.
• Regulate stock exchanges and other securities markets.
• Register and regulate intermediaries (brokers, merchant bankers, mutual funds, etc.).
• Prevent fraud, insider trading, and unfair trade practices.
• Promote investor education and grievance redressal.
• Ensure orderly functioning and transparency in the securities market.

Securities Appellate Tribunal (SAT)

• The Securities Appellate Tribunal (SAT) is a statutory adjudicatory body constituted under the SEBI Act, 1992.
• It hears appeals against orders issued by SEBI and its adjudicating officers.
• SAT is also the appellate authority for orders passed by:
  • PFRDA (as notified by the Government of India in 2014)
  • IRDAI (as notified in 2015)
• The Tribunal exercises appellate jurisdiction as provided under the SEBI Act and other applicable laws.