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Informist, Saturday, Mar. 29, 2025

 

MUMBAI – The Securities and Exchange Board of India's prescribed reforms have been aimed at enhancing the efficiency, transperancy and robustness of the market, and going forward, it will 'weed out' the regulations which are outdated and rationalise those are necessary, chairman of the markets regulator Tuhin Kanta Pandey said Saturday. These changes will be consistent with the regulator's objective to achieve optimum regulation and create ease of doing business by reducing compliance burden and the 'cost of regulation', Pandey said at the Mint India Investment Summit here. 

 

"SEBI is using technology, including artificial intelligence, to ensure that fund raising documents are cleared as fast as possible, without compromising on disclosures," Pandey said in his speech uploaded on the regulator's website. The market watchdog has recently prescribed quantitive thresholds for disclosures, bringing information symmetry for investors, Pandey said.  

 

To strengthen the governance at market infrastructure institutions, or MIIs, SEBI will continue to engage with the public interest directors of these institutions, collectively as well as individually, to have a better understanding of the operations and risks, Pandey said. SEBI has upgraded its supervision of these institutions in the last few years and now plans to make more use of technology. "Going ahead, we have instituted independent external evaluation of the MIIs once every three years, which will supplement our own supervision," he added.

 

Secondary market trades are under surveillance on a daily basis to detect suspicious patterns of trading, Pandey said, adding that the regulator's enforcement process has evolved in line with the changes in the market dynamics and the evolving jurisprudence in securities laws. SEBI has improved its investigation and enforcement process as now more entities are filing for settlement rather than going for litigations and the proportion of settlement has rise to 40%, the chairman said. "We will further encourage this trend," he added.

 

The market regulator plans to work with the market eco-system for a comprehensive awareness program for investors, including on matters related to cyber-frauds and risks, Pandey said. He also highlighted the watchdog's work on resolution and said the online dispute resolution system resolved nearly 5,600 disputes as of date with a claim value of around INR 3.90 billion. The SEBI's board has recently decided to form a high-level committee to review provisions related to conflict of interest for members and officials of the board.  End

 

Reported by Aman Aryan

Edited by Tanima Banerjee

 

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