This study offers an in-depth exploration of the Securities and Exchange Board of India (SEBI), tracing its evolution from a non-statutory body in 1988 to a statutory regulatory authority in 1992. The paper examines SEBI’s foundational objectives—investor protection, market development, and regulation—and how they have adapted to meet the challenges of a rapidly evolving financial ecosystem. It highlights the transformation of India’s securities market from a fragmented, paper-based system plagued by scams and manipulation to a modern, digitized, and transparent platform. However, the study also sheds light on prevailing concerns such as unregulated trading apps, fraudulent platforms, market manipulation, and cyber risks. Particular focus is placed on the lack of investor awareness, misuse of leverage, and the proliferation of Ponzi schemes disguised as investment platforms. The paper critically evaluates SEBI’s strategic countermeasures, including regulatory reforms, investor education initiatives, technological integration, and surveillance mechanisms. It underscores the importance of stringent licensing, transparent operations, and legal enforcement to protect retail investors. Conclusively, the paper asserts that while SEBI has significantly strengthened market integrity, ongoing vigilance and adaptive regulation are vital in an era of increasing digital finance and complex investment products.
