13.17What are SEBI’s investor protection measures?

Time-sensitive: Checked November 2026 for FY 2026-27. Verify on incometaxindia.gov.in, NSE, BSE or SEBI before filing or trading. Rules and rates change, so check the official source before acting.

1What is it?

Safeguards that protect investors in India.

2Why does it exist?

Knowing them helps you use them when something goes wrong.

3Diagram

Registration

Brokers, advisers, research analysts, funds must be SEBI-registered.

Segregation

Client money and securities kept separate; shares in your own demat.

SCORES + ODR

File complaints on SCORES; Online Dispute Resolution (SMART ODR) for unresolved ones.

Investor Protection Fund

Exchanges compensate eligible investors if a broker defaults.

Disclosures

Results, shareholding, insider trades, corporate actions are public.

Risk limits

Margin rules, circuit limits, F&O safeguards.

4Practical use

If you have a problem: (1) complain to your broker/DP in writing; (2) if unresolved within the timeline, file on SCORES; (3) escalate via SMART ODR. Always check registration on sebi.gov.in before trusting any adviser.

5Quick revision

Registration, segregation, SCORES/ODR, IPF, disclosures, risk limits.
Broker → SCORES → ODR.

6Knowledge check

Q1. Where to file a complaint against a broker?Show answer

First with the broker, then SEBI SCORES, then SMART ODR.

Q2. What is the Investor Protection Fund?Show answer

An exchange fund that compensates eligible investors when a broker defaults.

Q3. How to verify an adviser?Show answer

Check SEBI registration on sebi.gov.in.

More in Level 13: Taxes, Regulations and Important Indian Market Rules