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Informist, Friday, Jun. 20, 2025

 

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--SEBI Pandey: Making T+0 settlement mandatory not on the table 
--SEBI Pandey: Many jurisdictions still struggling with T+1 settlement 
--SEBI Pandey: No proposal to separate CCIL from exchanges
--SEBI Chairman Pandey: No obstacles remain in case of NSE IPO
--SEBI Chairman Pandey: Will not tolerate any form of market manipulation
--SEBI Chairman Pandey: Will come very hard on market manipulation
--SEBI Chairman Pandey: FPI inflow/outflow not related to tax norms
--SEBI Pandey: Domestic markets now capable of handling volatility
--SEBI Pandey: New norms likely to ease heightened activity on F&O expiry
--SEBI Chairman Pandey: Will strive to achieve optimum level of regulation
--SEBI Pandey: Aim to reduce friction for businesses, develop securities mkt
--SEBI Chairman Pandey: Dedicated cell set up to handle FPI investment
--SEBI Chairman Pandey: Long-term FPI inflow trend remains strong
--SEBI Chairman Pandey: Indian corporate bond market growing rapidly
--SEBI Chairman Pandey: Momentum in debt market picking up
--CONTEXT: SEBI Chairman Pandey's comments at Financial Express event
--SEBI Pandey: Reforms have ensured investor protection, safe market growth
--SEBI Pandey: Growth in India's fincl markets phenomenal across segments
 

 

MUMBAI – Securities and Exchange Board of India Chairman Tuhin Kanta Pandey Friday said the proposal to make T+0 settlement cycle mandatory is not on the table. "T+0 was in any case supposed to be optional even that time (referring to the beta version of the optional T+0 settlement cycle launched last year)...but to make it mandatory is not on the table," he said, speaking at the FE CFO Awards.

 

To make T+0 settlement cycle mandatory would be difficult because of the challenges in bringing investors from different time-zones together. "...because it is a market which is global, it is not really a local market, because there are many people around the globe...and we have to really see that everything is in sync so that we do not have disruptions. So right now we are not, you know, pushing forward that," Pandey said.

 

He said the T+1 settlement cycle has been one of the greatest achievements of India, while many other jurisdictions are still struggling with it. He added that there is a need to allow the existing settlement system to stabilise, before moving ahead.

 

Noting momentum in the debt market, Pandey said there has been a "phenomenal" growth across segments in India's financial markets. The long-term trend of foreign portfolio investments in India remains strong, he said, adding that SEBI has also set up an FPI outreach cell to directly engage with foreign investors. He noted a rapid growth in the corporate bond market, enumerating a few measures recently introduced to further strengthen and deepen the aforementioned market.

 

He said reforms introduced by SEBI have helped in ease of doing business and strengthened the overall regulatory oversight to safeguard interests of investors while allowing the market to grow. Pandey said SEBI's objective is to reduce friction for businesses as much as possible and to promote the development of securities market, adding that it will strive to achieve an optimum level of regulation.

 

Talking about measures taken to strengthen the equity index derivatives framework, Pandey said such norms are expected to diminish the "heightened" market activity on expiry date, and could help "de-risk the system from sudden unexpected shocks." He said the Indian market is overall stable and capable of handling volatility, which has increased after imposition of tariffs by US President Donald Trump on its trading partners. However, he said volatility in the Indian market still remains lower than certain other countries, "well within out manageable limit." Answering a question on whether FPIs deserve better tax treatment, Pandey said "FPI outflow and inflow is not really related to any tax issue." 

 

In the case of Gensol Engineering, where SEBI had issued an interim order against the company in April with regard to misappropriation of funds by its promoters, Pandey said the market regulator will continue to watch and take strict measures against market manipulation. "We have come hard (on market manipulation) earlier also, and I think going forward, market manipulation will be one we will not tolerate," Pandey said.

 

On a question whether National Stock Exchange's initial public offering could come up before Diwali, which is on Oct. 20, Pandey said no obstacle remains in this case. He said that while there was a consultation paper which pondered whether to reduce exchange ownership in clearing corporations, he said there was no proposal to structurally separate clearing corporation from exchanges.  End

 

Reported by Kabir Sharma, Sourabh Kumar, and Vaishali Tyagi

Edited by Ashish Shirke

 

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