Sebi pushes for resilient capital markets, focuses on investor protection: Chairman

SEBI Chairman Tuhin Kanta Pandey has emphasized that the regulator is dedicated to making India's capital markets more accessible, efficient, and resilient, with a primary focus on protecting investors. At the Bharat Chamber of Commerce Investors Forum, Pandey highlighted that market capitalization has increased significantly over the past decade, with companies raising more than Rs 10 lakh crore annually through equity and debt issuances.

While strengthening markets for businesses is crucial, ensuring investor protection is equally important, as world-class markets must remain efficient during normal times and resilient during periods of stress.

Pandey stated that the objectives of facilitating capital formation, improving ease of doing business, and strengthening investor protection are interconnected and support each other. In terms of regional growth, he noted that investor participation in West Bengal has risen dramatically, with the number of investors increasing from around 12 lakh in the 2015 financial year to over 90 lakh today. Approximately 36% of these investors are young individuals under the age of 30.

To reduce compliance burdens and enhance operational efficiency, Pandey revealed that SEBI has implemented measures to streamline the fundraising process, including simplifying IPO procedures, reducing timelines for rights issues, adjusting listing requirements for large issuers, allowing certain employee stock options after listing under specific conditions, and easing listing timelines for public issues.

Additionally, he mentioned that certain debt securities can be issued with lower face values, and mandatory merchant banking requirements have been relaxed for eligible issuers conducting private placements.

Pandey stressed that financial education and protection are paramount for investors, as an informed investor is the first line of defense. He reiterated that building robust capital markets is not solely about achieving higher market capitalization, increased trading volumes, or faster transactions. The true measure lies in how effectively markets connect savings with productive investment, support businesses in raising capital, and provide investors with opportunities to contribute to economic growth.