Investment & Trading in India: SEBI-Regulated Companies, Registration Norms, Onboarding Criteria, and “Claim” (Dispute/Grievance) Workflows

Investment and trading in India operate under a regulated market structure overseen primarily by SEBI (Securities and Exchange Board of India). A safe and compliant setup requires you to understand:

• Which “companies” operate (stock exchanges, clearing corporations, depositories, brokers, DPs, mutual funds, advisers, research analysts, etc.).

• How these entities are registered/recognized and what norms apply.

• How to start investing/trading on correct grounds (suitability, risk, costs, compliance).

• How to “claim” outcomes when things go wrong (complaints, arbitration, defaulter claims, SEBI SCORES).

This article is written as a technical KB-style SOP with checklists and workflows.

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1) What companies operate in India’s investment & trading ecosystem?

SEBI refers to Market Infrastructure Institutions (MIIs) as the backbone of markets (trading, clearing, settlement) and regulates key intermediaries.

1.1 Market Infrastructure Institutions (MIIs)

A) Stock Exchanges (SEBI-recognized)
SEBI publishes the official “Details of Stock Exchanges” list.

+----+-----------------------------------------------+----------------------------+-------------------------+
| #  | Recognized Stock Exchange (examples)           | Recognition Validity       | Segments (examples)     |
+----+-----------------------------------------------+----------------------------+-------------------------+
| 1  | BSE Ltd.                                       | Permanent                  | Equity/Derivatives/etc. |
| 2  | National Stock Exchange of India Ltd. (NSE)     | (As per SEBI list)         | Equity/Derivatives/etc. |
| 3  | Metropolitan Stock Exchange of India Ltd.       | Valid up to Sep 15, 2026   | Equity/Derivatives/etc. |
| 4  | Calcutta Stock Exchange Ltd.                   | Permanent (no segments)    | (As per SEBI list)      |
+----+-----------------------------------------------+----------------------------+-------------------------+

Always rely on the SEBI page for the current authoritative list and validity.

B) Clearing Corporations (CCPs)
SEBI publishes a “List of Clearing Corporations”.

+----+--------------------------------------------------------------+------------------+
| #  | Clearing Corporation (examples)                               | Validity         |
+----+--------------------------------------------------------------+------------------+
| 1  | Indian Clearing Corporation Ltd. (ICCL)                       | Up to Oct 02, 2026 |
| 2  | Multi Commodity Exchange Clearing Corporation Ltd. (MCXCCL)    | Up to Jul 30, 2028 |
| 3  | National Commodity Clearing Ltd. (NCCL)                        | (As per SEBI list) |
+----+--------------------------------------------------------------+------------------+

C) Depositories
SEBI publishes “List of Depositories”.

+----+-------------------------------------------+------------+
| #  | Depository (SEBI-recognized)              | Validity   |
+----+-------------------------------------------+------------+
| 1  | Central Depository Services (India) Ltd.  | Permanent  |
| 2  | National Securities Depository Ltd. (NSDL)| (As per SEBI list) |
+----+-------------------------------------------+------------+

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2) Key “companies” you deal with as an investor/trader (intermediaries)

2.1 Stock Brokers (Trading Members)

Brokers must be SEBI-registered; SEBI provides a searchable list for registered stock brokers.
NSE also provides a broker locator directory.

2.2 Depository Participants (DPs)

DPs interface with NSDL/CDSL to provide demat services. You can validate DPs via:

• SEBI’s registered DP list page

• NSDL DP search page

• CDSL DP list page

2.3 Mutual Funds (Fund Houses)

SEBI maintains a list of Registered Mutual Funds (fund houses).

2.4 Investment Advisers and Research Analysts

SEBI provides official lists:

• Registered Investment Advisers (RIA)

• Registered Research Analysts (RA)

Practical risk note: SEBI regularly takes action for non-compliance; always verify registration before engaging.

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3) How these entities are registered/recognized (norms overview)

3.1 Stock brokers registration norms

Brokers must obtain a SEBI registration under SEBI Stock Broker regulations (registration chapter covers application, information, consideration, fit & proper, conditions of registration, etc.).

Operational implication for investors

• Your broker must have a SEBI registration number (commonly in the format INZ… for stock brokers).

• Broker must follow exchange + SEBI compliance requirements (client onboarding, margin rules, reporting, grievance channels, etc.).

3.2 MIIs recognition and governance

SEBI regulates MIIs (exchanges, clearing corporations, depositories) as core market plumbing for transparency and investor protection.

3.3 Intermediary verification (single best practice)

Use SEBI’s “Recognised Intermediaries” search to validate registration status and details.

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4) How to start Investment & Trading in India (on what grounds)

4.1 Choose your product type by goal + risk

• Mutual funds: goal-based investing, diversified portfolios

• Equities: ownership risk, volatility

• Derivatives (F&O): leverage risk, suitability critical

• Commodities: additional volatility and contract-specific risks

• Bonds/debt: interest-rate and credit risks

4.2 Suitability “grounds” checklist (practical)

Use this as a minimum decision framework:

• Risk capacity: can you tolerate 20–40% drawdown without forced selling?

• Time horizon: short-term (<1 year) vs long-term (3–7+ years)

• Liquidity need: emergency cash buffer separate from trading capital

• Cost tolerance: brokerage, exchange charges, taxes, DP charges, fund expense ratios

• Complexity tolerance: derivatives only after understanding margin/MTM and loss scenarios

• Compliance: trade only through SEBI-registered intermediaries; avoid “guaranteed returns” groups/scams

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5) Step-by-step implementation: Account setup (Trading + Demat)

Step 1 — Select regulated entities (hard control)

• Pick a SEBI-registered broker (verify on SEBI broker list).

• Pick a DP (verify on SEBI/NSDL/CDSL pages).

Step 2 — Complete KYC and onboarding

Typical onboarding includes:

• PAN + address proof

• Bank account proof (cheque/statement)

• IPV / video verification (as per intermediary process)

• Nominee details (recommended)

Step 3 — Configure account risk controls (before first trade)

• Enable 2FA/OTP, app lock, device binding (where available)

• Set trade limits and alerts

• Whitelist bank accounts (where available)

• Avoid sharing OTP or remote-access tools with anyone

Step 4 — Understand settlement and statements

Minimum items you must receive/store:

• Contract notes (trade confirmation)

• Ledger statements

• Demat holding statements

• Margin statements (for derivatives)

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6) Trading workflow: from order to settlement (technical explanation)

6.1 Order lifecycle (simplified)

1. Place order (limit/market)

2. Order routed to exchange

3. Trade execution (match)

4. Clearing corporation calculates obligations

5. Settlement via clearing banks + depository entry (demat) / funds movement

6.2 Example: Trade record schema (internal tracker)

{
  "tradeId": "TRD-2026-01-09-000123",
  "exchange": "NSE",
  "symbol": "XYZ",
  "side": "BUY",
  "qty": 100,
  "price": 250.50,
  "charges": {
    "brokerage": 0.00,
    "exchange": 12.34,
    "taxes": 5.67
  },
  "contractNoteId": "CN-987654",
  "timestamp": "2026-01-09T11:32:45+05:30"
}

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7) How to “claim” (complaints, disputes, arbitration, defaulter claims)

In securities markets, “claim” usually means:

• raising service/transaction grievances (wrong charges, non-receipt of securities/funds, unauthorized trades),

• invoking dispute resolution (conciliation/arbitration), or

• filing complaints via SEBI SCORES.

7.1 SEBI SCORES (central complaint facilitation)

SEBI SCORES is the official platform to lodge grievances against SEBI-regulated entities (listed companies, intermediaries, MIIs). It also states you should first raise the issue with the entity’s grievance official before escalating.

SCORES workflow (practical)

1. Raise complaint with broker/DP/AMC first (email + ticket)

2. If unresolved, file on SCORES with category and evidence

3. Track updates and closure reason

7.2 Exchange complaint + arbitration (NSE example)

NSE publishes the process for investor complaints, conciliation, and arbitration, including online complaint filing and tracking.
Arbitration is a quasi-judicial mechanism for disputes between investors and members.

Typical escalation ladder

Level 1: Broker/DP internal grievance (email/ticket)
Level 2: Exchange grievance/ODR (complaint portal)
Level 3: Conciliation / Arbitration (if unresolved)
Level 4: SEBI SCORES (for SEBI-regulated entities)

(Use the channel appropriate to the entity and dispute type.)

7.3 What evidence to attach (minimum)

• Contract notes / order logs

• Ledger statement

• Bank statement (debit/credit proof)

• Demat statement (holding movement)

• Screenshots of app alerts/OTP messages (if fraud suspected)

• Email trail with broker/DP support

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8) Common issues & fixes (field-ready)

Issue A — “Unauthorized trades” / account compromise

Fix

• Immediately block trading / reset passwords / disable API keys (if used)

• Raise complaint with broker + exchange

• File SCORES complaint if not resolved

Issue B — Funds/securities not received or delayed

Fix

• Reconcile ledger vs bank vs demat statement

• Raise ticket and request written obligation/settlement explanation

• Escalate to exchange complaint and arbitration if needed

Issue C — Wrong charges / hidden fees

Fix

• Compare contract note charges and broker tariff sheet

• Ask for computation breakup and reversal reference

• Use SCORES if the intermediary doesn’t act

Issue D — Fraud groups promising guaranteed returns

Fix

• Do not transfer money to personal accounts or unknown UPI IDs

• Verify intermediary registration on SEBI lists

• Report suspicious activity (SEBI and exchange channels)

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9) Security considerations (critical for traders)

High-risk assets

• KYC documents, PAN, bank statements

• Demat credentials, trading PIN, OTP

• API keys (if algo trading)

Controls checklist

• Enforce 2FA and strong passwords; rotate periodically

• Don’t share OTP/PIN; no legitimate entity asks for it

• Disable remote-access tools during support calls

• Use device-level encryption (BitLocker/FileVault) for storing statements

• Maintain a “single source of truth” archive for disputes

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10) Best practices

For investors

• Use SEBI-registered intermediaries only (broker/DP/AMC/RIA/RA).

• Prefer diversified investing for long-term goals (mutual funds/asset allocation).

• Keep a dispute-ready record: contract notes, statements, emails for at least the period required by your compliance needs.

For active traders

• Trade with predefined risk rules (max daily loss, position sizing, stop loss)

• Avoid leverage unless you fully understand margin/MTM

• Use exchange and SEBI complaint mechanisms promptly if issues arise

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Conclusion

Investment and trading in India are safe and scalable when treated as a regulated workflow:

• Trade through SEBI-recognized MIIs (exchanges/CCPs/depositories) and SEBI-registered intermediaries.

• Start based on suitability grounds (risk capacity, horizon, liquidity, costs).

• For “claims” (disputes/grievances), follow a structured escalation ladder—entity → exchange mechanisms → arbitration → SEBI SCORES. 

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