SEBI AS THE REGULATOR OF THE INDIAN CAPITAL MARKET: POWERS, ACCOUNTABILITY AND THE MOVE TOWARDS A SECURITIES MARKETS CODE

Abstract A capital market works only when investors trust it. In India that trust is underwritten by the Securities and Exchange Board of India (SEBI), a statutory body that makes the rules, supervises the participants, investigates wrongdoing and adjudicates the result. This article explains how SEBI is constituted under the Securities and Exchange Board of India Act, 1992, what powers the Act gives it, how those powers are exercised through regulations, interim orders, adjudication and prosecution, and how they are checked by the Securities Appellate Tribunal and the Supreme Court. It then looks at two live developments, the Securities Markets Code Bill, 2025 and the Jane Street proceedings, and argues that the concentration of legislative, investigative and adjudicatory functions in one body is the central design question for the regulator. The article ends with suggestions for strengthening procedural fairness without weakening SEBI's ability to act quickly. Keywords: SEBI; capital market; securities regulation; SEBI Act, 1992; Securities Appellate Tribunal; insider trading; Securities Markets Code.