Chairman of SEBI is appointed by the Union Government of India.
SEBI was first established in 1988 as a non statutory body for regulating the securities market. In 1992, Parliament of India passed Securities and Exchange Board of India Act, 1992 and gave it a statutory status. It is headquartered in Mumbai.
The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as
“…to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto”