Pandey Urges Real Governance, Not Box‑Ticking; Says Disclosure Failures Threaten Markets

SEBI Chairman Tuhin Kanta Pandey has urged companies and market participants to view corporate governance as a serious responsibility rather than merely a compliance formality. Speaking at the 77th Foundation Conclave of the Bombay Chartered Accountants' Society (BCAS), Pandey highlighted the importance of going beyond rules and checklists to ensure transparency and trust in the financial markets.

According to Pandey, the Securities and Exchange Board of India (SEBI) has already put in place a detailed disclosure system for listed companies. These disclosures help investors assess a company's financial health and performance. However, delays, incorrect information, or the concealment of facts can damage investor confidence and harm the markets, he warned.

SEBI has, in the past, taken strict action against companies and individuals who failed to follow proper disclosure norms. Some have been barred from raising funds from the markets, while others have been prevented from holding senior positions in listed companies.

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Easier Compliance, Not Overregulation

Pandey also clarified that SEBI's aim is not to overwhelm companies with complicated rules. Recent steps, such as introducing a single-filing system for listed firms, are designed to simplify business operations while maintaining accountability. He added that regulators and companies need to collaborate to create a system that is both fair and efficient.

"We don't want to micro-manage companies. But we do want proper cooperation to make markets safer and more transparent," Pandey explained.

New Measures to Tackle Cyber Fraud

With online scams and cyber fraud becoming more common, SEBI is introducing new tools to protect investors. One such initiative is the 'Valid UPI' system, which is expected to go live on October 1, 2025. This is aimed at reducing fraud during financial transactions. A major investor education drive is also planned to help people better understand the risks and opportunities in the markets.

Low Retail Participation in Bonds a Concern

While large companies are increasingly raising funds through capital markets instead of traditional bank loans, Pandey pointed out that retail investors still hesitate to invest in bonds. He believes better awareness and simpler products are needed to attract everyday investors to this space.

"Retail investors often shy away from bonds as they find them confusing. We need to simplify these products and spread awareness," he said.

Conclusion

Pandey's message was clear—real governance is about culture and responsibility, not just paperwork. SEBI is focusing on practical reforms, cybersecurity, and investor education to make Indian markets safer and more inclusive for all.