Regulators: SEBI, RBI, IRDA

Imagine a cricket match without an umpire. Chaos, right? Financial markets are the same. Regulators are the Umpires who ensure fair play and protect players (investors) from cheaters.

1. RBI (Reserve Bank of India) - The Boss

Role: Central Bank of India. The "Banker to Banks." Controls: Banking System, Inflation, Currency.

Key Functions:

• Monetary Policy: Decides Interest Rates (Repo Rate).
• Prints Money: Issues currency notes.
• Regulates Banks: Ensures HDFC, SBI, ICICI don't run away with your money.
• Forex: Manages foreign exchange reserves.

Impact on You:

• If RBI raises rates, your Home Loan EMI goes up.
• If RBI lowers rates, FD interest goes down.

2. SEBI (Securities and Exchange Board of India) - The Market Watchdog

Role: Regulator of Stock Markets and Mutual Funds. Mission: Protect the interests of investors.

Key Functions:

• Regulates Stock Exchanges: NSE and BSE.
• Regulates Intermediaries: Brokers (Zerodha), Mutual Funds, PMS.
• Prevents Fraud: Catches Insider Trading, Price Rigging.
• IPO Approval: Checks company documents before they go public.

Impact on You:

• Ensures your broker doesn't steal your shares.
• Ensures Mutual Funds are transparent about fees and risks.

3. IRDAI (Insurance Regulatory and Development Authority of India)

Role: Regulator of Insurance Sector. Controls: Life Insurance (LIC, HDFC Life) and General Insurance (Health, Car).

Key Functions:

• Policyholder Protection: Ensures claims are settled fairly.
• Licensing: Approves new insurance companies and agents.
• Product Regulation: Prevents confusing or toxic policies.

Impact on You:

• If an insurer rejects your valid claim, you can complain to the Insurance Ombudsman (under IRDAI).

4. PFRDA (Pension Fund Regulatory and Development Authority)

Role: Regulator of Pensions. Controls: NPS (National Pension System).

Summary Table

7-Day Action Plan

Day 1: Go to the SEBI website (sebi.gov.in) and check the "Investor Charter".
Day 2: Check your bank's website. Look for the "RBI Ombudsman" link at the bottom.
Day 3: Read a news article about "RBI Repo Rate".
Day 4: Check your Insurance Policy. Find the IRDAI Registration Number of the insurer.
Day 5: Watch the movie/series "Scam 1992" to see what happens when regulators are weak.
Day 6: Learn about "SCORES" (SEBI's complaint portal).
Day 7: Verify if your Financial Advisor is SEBI Registered (RIA). Ask for their registration number.

Quiz

💡 Final Wisdom: Regulators are your bodyguards. But even with bodyguards, you shouldn't walk into a fire. Be vigilant, but trust the system.