SEBI vs. SEC: A Comparative Institutional Analysis of Investor Protection
Frameworks

Prahas Balaji

doi:10.46609/IJSSER.2026.v11i10.013

Title: SEBI vs. SEC: A Comparative Institutional Analysis of Investor Protection Frameworks
Authors: Prahas Balaji
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 11 Issue: 10 Publication Date: October 2026 DOI: 10.46609/IJSSER.2026.v11i10.013
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Prahas Balaji Excel Public School
MLA 8 Balaji, Prahas. "SEBI vs. SEC: A Comparative Institutional Analysis of Investor Protection Frameworks." Int. j. of Social Science and Economic Research, vol. 11, no. 10, Oct. 2026, pp. 5580-5600, doi.org/10.46609/IJSSER.2026.v11i10.013. Accessed Oct. 2026. APA 6 Balaji, P. (2026, October). SEBI vs. SEC: A Comparative Institutional Analysis of Investor Protection Frameworks. Int. j. of Social Science and Economic Research, 11(10), 5580-5600. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i10.013 Chicago Balaji, Prahas. "SEBI vs. SEC: A Comparative Institutional Analysis of Investor Protection Frameworks." Int. j. of Social Science and Economic Research 11, no. 10 (October 2026), 5580-5600. Accessed October, 2026. https://doi.org/10.46609/IJSSER.2026.v11i10.013.
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ABSTRACT: This paper compares the Securities and Exchange Board of India (SEBI) and the U.S. Securities and Exchange Commission (SEC) to understand how two major financial regulators protect investors and maintain trust in their markets. It examines their historical development, institutional structures, investor protection mechanisms, enforcement powers, and responses to changing market risks. The paper also uses major enforcement cases to understand how regulatory powers operate in practice rather than only comparing laws and regulations on paper. The analysis finds that the two regulators approach investor protection differently: the SEC benefits from a long-established enforcement system and strong legal mechanisms, while SEBI has developed investor-focused systems suited to India's rapidly expanding retail market. The paper argues that neither framework can simply be copied by the other because the two regulators operate in different market and institutional environments. Instead, both can learn from each other's approaches, particularly in enforcement, investor redress, technology, financial influencers, and cross-border regulation.

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