SEBI Chairman Tuhin Pandey: Bold reforms don’t need a big bang approach.

Bold reforms don’t always have to be revolutionary, and moving forward, the capital market regulator will adopt a balanced approach to meet its goals, stated SEBI Chairman Tuhin Kanta Pandey during his keynote speech at the Moneycontrol Global Wealth Summit on March 7 in Mumbai.

"Bold reforms don’t necessarily need to be radical. Often, incremental changes prove to be more effective when combined over time. Looking ahead, SEBI will employ a strategic mix to achieve its objectives," he emphasized. The regulator also highlighted that reforms play a crucial role in enhancing efficiency and resilience in the equity market, with technology serving as a key driver of these transformations.

Enhancing Market Efficiency Through Innovation and Technology

Tuhin Kanta Pandey reiterated SEBI’s commitment to fostering innovative financial instruments for capital raising. "Products such as Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and municipal bonds hold immense potential to propel infrastructure development in India. These financial tools not only offer diversified funding sources but also lessen dependence on conventional capital-raising methods," he noted.

The chairman emphasized that such financial instruments are gaining traction among investors, both domestic and international, as they provide exposure to high-growth sectors while ensuring stable returns. By expanding the use of these products, SEBI aims to deepen the capital markets and provide companies with alternative financing options that reduce over-reliance on bank credit.

Leveraging Technology for Market Growth and Investor Protection

"Reforms are instrumental in strengthening market efficiency and stability, and technology is playing a significant role in enabling advancements that were once beyond our imagination," he added. He further stressed SEBI’s responsibility to minimize systemic risks through regulation while ensuring investor protection.

The rise of fintech companies and digital investment platforms has transformed the way individuals engage with the stock market. "The convenience of digital platforms has significantly boosted retail investor participation," Pandey remarked, acknowledging the substantial contributions of fintech firms in making investment access seamless.

SEBI has been proactively working on regulatory frameworks that encourage innovation while safeguarding investor interests. The chairman noted that the introduction of AI-driven advisory tools, blockchain for transparency, and digital KYC processes has simplified onboarding and transaction procedures, bringing millions of new investors into the market.

Collaboration and Capital Inflows Critical for Sustained Growth

Additionally, he underscored the importance of collaboration within SEBI and with market stakeholders to cultivate an environment conducive to investment. He emphasized that regulatory decisions are increasingly being made in consultation with industry participants to create policies that are both progressive and pragmatic.

"As we aim for the ambitious growth trajectory we envision, securing both foreign and domestic capital is crucial to sustaining this momentum. With India's robust economic fundamentals and favorable demographics, the country remains a prime destination for long-term investments," Pandey asserted.

India’s capital markets have seen a sharp rise in retail investor participation, a trend that SEBI seeks to strengthen by fostering financial literacy and investment awareness. The chairman pointed out that the regulator is working with financial institutions, stock exchanges, and educational bodies to promote informed investing.

Attracting Foreign Investment and Strengthening Market Infrastructure

SEBI also emphasized the role of long-term foreign investments in driving India’s infrastructure growth. "We recognize the importance of creating a welcoming environment for foreign capital. SEBI is open to engaging with Foreign Portfolio Investors (FPI) and Alternative Investment Fund (AIF) participants to address any challenges they may face," the chairman concluded.

Foreign investors have played a crucial role in the development of India’s financial markets, and ensuring a stable, transparent regulatory framework will be key to maintaining their confidence. SEBI is actively working on simplifying compliance requirements, expediting approval processes, and reducing bureaucratic hurdles to facilitate smoother capital inflows.

With ongoing reforms, technological advancements, and strategic regulatory measures, SEBI aims to position India as a leading financial hub, capable of attracting both domestic and international investments. The chairman’s address made it clear that the regulator is committed to fostering an efficient, inclusive, and globally competitive market ecosystem that will drive sustainable economic growth in the years to come.