SEBI Regulator Review (2026)
Securities and Exchange Board of India · India · Est. 1992
The Securities and Exchange Board of India (SEBI) is a tier 2 — moderate based in India, established in 1992. It provides IPEF up to ₹15 lakh. Retail leverage is capped at 1:5 equity, 1:20 index futures. In BrokerRank's database, 19 brokers hold SEBI licenses, averaging 3.04/5 — below the platform average of 3.3/5.
Official SEBI websiteInvestor Protection
IPEF up to ₹15 lakh
Leverage Cap (Retail)
1:5 equity, 1:20 index futures
Min. Capital Requirement
₹3 crore minimum
Key Requirements
- • Only Indian exchanges (NSE/BSE)
- • No forex CFDs
- • Strict KYC
- • Client fund segregation
Who Should Choose an SEBI-Regulated Broker?
Indian traders (stocks & futures only)
SEBI is the only legal option for retail traders in India. SEBI-regulated brokers provide access to NSE and BSE — India's major stock and derivatives exchanges.
Equity & index futures traders
SEBI-regulated brokers offer some of the lowest brokerage fees globally for Indian equities (e.g. Zerodha at ₹20/trade flat). Ideal for high-frequency equity and F&O traders.
Important: forex CFD restriction
SEBI does not permit retail forex CFD trading on international pairs. Indian traders looking for forex or international CFD exposure must use overseas-regulated brokers — but this carries legal risk under FEMA regulations.
Broker Quality Distribution (19 brokers)
What SEBI Requires from Brokers
Minimum Capital
₹3 crore minimum
Leverage Cap (Retail)
1:5 equity, 1:20 index futures
Client Fund Safety
Segregated client accounts required
Investor Compensation
IPEF up to ₹15 lakh
Reporting
Annual audits + ongoing regulatory reporting
Key obligations
Top 5 SEBI-Regulated Brokers
| # | Broker | Rating | Min Deposit | Spread from | Platforms | |
|---|---|---|---|---|---|---|
| #1 | 3.26 | $0 | 0.0 pips | Proprietary Web, Proprietary Mobile, MO Investor | Open Account | |
| #2 | 3.14 | $0 | 0.0 pips | Proprietary Web, Proprietary Mobile | Open Account | |
| #3 | 3.10 | $0 | 0.0 pips | Proprietary Web, Proprietary Mobile | Open Account | |
| #4 | 3.08 | $0 | 0.0 pips | Proprietary Web, Proprietary Mobile | Open Account | |
| #5 | 3.08 | $0 | 0.0 pips | Proprietary Mobile, Proprietary Web | Open Account |
How to Verify a Broker's SEBI License
Visit sebi.gov.in and navigate to Intermediaries / Market Infrastructure Institutions → Registered Intermediaries
Search for the broker by name to verify their SEBI registration number (e.g. INZ000XXXXXX for stock brokers)
Confirm the registration is 'Active' under the relevant exchange (NSE, BSE, or MCX)
Important: SEBI-regulated brokers can only offer products on Indian exchanges (NSE/BSE) — any broker offering forex CFDs claiming SEBI regulation is misrepresenting their licence
Frequently Asked Questions
1Is SEBI a safe regulator?
SEBI is a Tier 2 regulator. It oversees 19 brokers in BrokerRank's database, which average a 3.04/5 rating — below the platform-wide average of 3.3/5. Client protection includes IPEF up to ₹15 lakh.
2How many brokers are regulated by SEBI?
In 2026, 19 brokers in BrokerRank's database of 345 hold a SEBI license. The top-rated SEBI-regulated broker is Motilal Oswal (3.26/5).
3What leverage does SEBI allow?
SEBI caps retail client leverage at 1:5 equity, 1:20 index futures. This is designed to limit losses for inexperienced traders.
4What happens if an SEBI-regulated broker goes bankrupt?
SEBI-regulated brokers are required to segregate client funds. In case of insolvency, clients may be eligible for compensation: IPEF up to ₹15 lakh.
5How does SEBI compare to other regulators?
BrokerRank data shows regulation has a 0.84 correlation with overall broker quality. CFTC-regulated brokers average 3.73/5 (highest), ASIC 3.59/5, MAS 3.57/5, FCA 3.51/5, CySEC 3.51/5. SEBI brokers average 3.04/5.
6How do I check if a broker really has a SEBI licence?
Go to the official SEBI — Registered Intermediaries at https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=13 and search for the broker by name or licence number. Confirm the status is active and the authorised activities match what the broker offers. Never rely solely on a logo on the broker's website — clone firms frequently copy licence details from legitimate brokers.
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