Exness SEBI

What is SEBI, and Why Does Its Registration Matter?

The Securities and Exchange Board of India (SEBI) is India’s primary regulatory authority for financial markets. Established in 1988 and granted statutory powers in 1992, SEBI’s mission is to protect investors, promote fair trading practices, and ensure the stability of India’s financial markets. Its oversight extends to stock exchanges, mutual funds, brokers, and forex trading platforms operating within India.

SEBI plays a critical role in regulating forex trading in India, working alongside the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA). According to FEMA, forex trading in India is restricted to INR-based currency pairs (e.g., USD/INR, EUR/INR) traded on recognized exchanges like the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE). Trading non-INR pairs, such as EUR/USD, through international brokers is considered a regulatory gray area and may violate FEMA provisions.