SEBI outlines capital market reforms with listing, bond and AI plans as market capitalisation reaches ₹472 lakh crore

SEBI has laid out several measures, including simplification of listing regulations, review of SME IPOs, corporate bond market measures, etc. to take forward in the form of disclosures, mainly highlighting reviews, proposals and work in progress and not necessarily regulatory changes. Chairman Tuhin Kanta Pandey mentioned that market capitalization had touched ₹472 lakh crore.

SEBI reviews LODR and SME IPO rules

SEBI is carrying out a comprehensive review of the Listing Obligations / Disclosure Requirements. Additionally, the capital raised by listed companies through public issues is proposed to be monitored more closely.

For small and medium enterprises, the review covers the initial public offering framework. SEBI said the work is intended to support genuine businesses raising capital while protecting investors.

Corporate-bond access measures remain in development

For secondary-market corporate-bond trading, SEBI is developing a market-making framework to improve liquidity. The regulator is also working on a Fixed Income Channel Partner framework to widen retail access through regulated online bond platforms.

The second phase of the Demat 2.0 pilot will provide for secondary-market trading of tokenised corporate bonds, according to SEBI. Pandey said the regulator’s priorities were simpler rules, deeper markets, responsible innovation and wider access, with investor protection and market integrity retained as safeguards.

Pandey cites investor access and market knowledge figures

India had more than 15 crore unique investors, Pandey said. He also placed mutual fund assets at ₹83 lakh crore and said market capitalisation had grown nearly fivefold over the past decade before reaching ₹472 lakh crore.

SEBI’s Investor Survey 2025 found that 36 per cent of investors had moderate to high knowledge of securities markets. The figure was cited by Pandey as part of the regulator’s discussion of investor awareness.

AI sandbox remains under exploration

SEBI is exploring an artificial intelligence sandbox, Pandey said. The proposed controlled environment would be used to test applications, assess risks, develop safeguards and provide regulatory clarity to innovators.