SEBI Chairman Tuhin Kanta Pandey has assured that Indian stock markets are stable and well-protected, even as global markets face ups and downs. Just a month into his new role, he shared his plans to build a more transparent and technology-friendly market environment.
Pandey said SEBI’s main goals are investor protection, market development, and proper regulation. He added that SEBI will work on four important points – trust, transparency, technology, and teamwork.
To improve trust and reduce risks, SEBI has formed a special committee to review rules about conflicts of interest. The aim is to make sure that rules are clear, up-to-date, and not too strict where unnecessary.
He also confirmed that India’s financial systems are strong. “There is no risk of default in payment or settlement. Investors can buy and sell without problems,” he said. He added that India saw an 8.5% CAGR in dollar terms from 2019 to 2024, while other emerging markets saw zero growth, and China showed a negative 3%.
India has a projected 6.5% GDP growth on the strength of a supportive budget and accommodative monetary policies, according to Pandey. That provides a favorable environment for the investors.
Discussing IPOs, he commented that India recorded the maximum number of IPOs in the world. Although there had been some issues with small SME IPOs, SEBI had already made adjustments for them. For big corporations, activity for their IPOs continues strong.
Technologically, SEBI and RBI are collaborating on introducing a common KYC platform that will simplify investment for the investors. There are also talks of opening up foreign investors for investment straight into Indian markets, although the decisions remain under consideration.
Pandey noted that a host of corporations these days like to get listed in India, and reverse flipping happens frequently. Pandey added that SEBI is also making efforts to combat false content and fraud on the web. To date, around 70,000 deceptive YouTube financial influencers have been taken down with Google and Meta’s cooperation.
Futures contracts on energy are attracting increasing attention from SEBI, but agricultural commodity futures are contingent on government policy. He said that the existing T+1 settlement cycle is rapid enough for the time being, with no plan in sight for shifting towards T+0 for all equities.
He also addressed the artificial intelligence (AI) topic, stating that although there are positives of using it, there are some risks too. SEBI will be engaged with safety aspects around AI in the markets.
Regarding investor education, there needs to be greater awareness, Pandey said. Individuals should not invest in stocks by borrowing funds. SEBI will make a greater effort towards financial education and will be organizing special events “Niveshak Shivirs” in Mumbai and Gujarat.
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Source: Moneycontrol.
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