Securities and Exchange Board of India (SEBI) is the regulatory body for the Indian Stock markets. SEBI has been established under Section 3 of SEBI Act to protect the interests of the investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith and incidental thereto.

Composition

• Chairman
• Two members from amongst the officials of the Ministries of the Central  Government dealing with Finance and Law
• One member from amongst the officials of the Reserve Bank 
• Two other members appointed by the Central Government, who are professionals and interalia, have experience or special knowledge relating to the securities market. 

1. Regulating the business in stock exchanges and any other securities markets.

2. Registering and regulating the working of stockbrokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities market in any manner.

3. Registering and regulating the working of collective investment schemes, including mutual funds.

4. Promoting and regulating self-regulatory organizations.

5. Prohibiting fraudulent and unfair trade practices in securities market.