SEBI plans simpler fundraising rules, lower compliance costs to boost capital markets

The Securities and Exchange Board of India (SEBI) is working to simplify fundraising processes and reduce compliance burdens in India's capital markets, according to Tuhin Kanta Pandey. Pandey, speaking at a Bharat Chamber of Commerce event, emphasized the importance of connecting household savings with productive investments. SEBI has streamlined initial public offering (IPO) processes, shortened timelines for rights issues, and rationalized listing requirements for large issuers.

For the debt market, the regulator has reduced listing timelines for public issues, allowed lower face value debt securities, and relaxed merchant banking requirements for private placements. Pandey stated that these measures aim to lower issuance costs while maintaining necessary safeguards. He highlighted that SEBI is reviewing regulatory processes to make compliance more proportionate and risk-based.

India's capital markets have seen significant growth, with market capitalization increasing at an annual rate of around 17% over the past decade, and mutual fund assets expanding by around 20% annually. The number of unique investors in the securities market has quadrupled since FY19, reaching over 15 crore. Companies raised over Rs 98,000 crore through 189 IPOs in the first half of the current financial year, and outstanding corporate bonds stood at approximately Rs 61 lakh crore.

Pandey also stressed the importance of cybersecurity, operational resilience, surveillance, and risk management in world-class markets, especially during periods of stress.