Many investors access international markets through Indian financial products and intermediaries.

That is where the Securities and Exchange Board of India (SEBI) comes in.

SEBI is the primary regulator of India’s securities markets. Its responsibility is to oversee how investment products are structured, distributed, and managed within India.

This includes regulating:

1/ Indian stock exchanges such as NSE and BSE
2/ Mutual funds and asset management companies
3/ Stockbrokers and investment advisers
4/ Portfolio managers and research analysts
5/ Market conduct and disclosure standards

In the context of global investing, SEBI becomes relevant mainly in two situations.

The first is when Indian mutual funds invest overseas.

Many Indian fund houses offer international exposure through feeder funds or global equity funds that invest in foreign stocks or overseas ETFs. SEBI regulates these funds just like any other domestic mutual fund.

SEBI sets rules around:

1/ how these funds disclose their overseas exposure
2/ how the investments are structured
3/ how investors are informed about risks

SEBI also introduced the overall overseas investment limits for the mutual fund industry. At present, Indian mutual funds together can invest up to $7 billion in foreign securities, with additional limits for overseas ETFs.

When these industry limits are reached, fund houses may temporarily stop accepting new investments into their international funds. Investors have seen this happen several times over the past few years.

The second situation where SEBI plays a role is when Indian intermediaries distribute or facilitate access to international investments. Any entity operating in India and offering investment-related services must follow SEBI’s regulatory framework.

What SEBI does not regulate, however, are foreign markets themselves.

If you buy shares of a US-listed company such as Apple or Microsoft through a global brokerage account, SEBI does not oversee that company or the exchange where it trades. Those fall under the jurisdiction of regulators in the United States.

So SEBI’s role in global investing is primarily about regulating the Indian side of the ecosystem — the funds, intermediaries, and investment products that operate within India.

The markets where the actual securities trade are governed by regulators in those respective countries.