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Informist, Monday, Feb. 23, 2026

 

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--SEBI Pandey on fraud at IDFC FIRST Bank: Can't comment in individual cases 
--SEBI Pandey: Working with govt to review ban on certain commodity futures 
--SEBI Pandey: Brokers have sought relief in new RBI proprietary trading norms 
--SEBI Pandey: Certain norms on portfolio managers warranted rationalisation 
--CONTEXT: SEBI Chairman Tuhin Kanta Pandey speaking at a conference 
--SEBI Pandey: To propose new norms for portfolio managers by June

 

MUMBAI – Stock brokers have approached the Securities and Exchange Board of India seeking relief from new proprietary trading norms framed by the Reserve Bank of India, SEBI Chairman Tuhin Kanta Pandey said on Monday, adding that the market regulator will examine the representation before taking a view. The central bank proposed rules from Apr. 1 that would bar bank loans for proprietary trading and demand 100% collateral for most other bank funding to brokers.

 

Speaking at a conference, Pandey said SEBI has received a representation from brokers flagging concerns over draft RBI guidelines, particularly around bank guarantees, collateral collection, and restrictions linked to proprietary trading. "We have received a representation...it is in relation to particularly the issues around the bank guarantees and how much they can collect, rules that have to be given for the proprietary trading and so on. There are three, four issues," Pandey said.

 

He noted that the matter primarily falls within the RBI's domain but indicated that SEBI would review the concerns since the representation had also been sent to the capital markets regulator. "Since the representation has also come to us, we will have a look at it," he said, declining to comment further before examining the details.

 

Pandey also said that SEBI is undertaking a comprehensive review of the Portfolio Managers Regulations, 2020, with a consultation paper likely before a board meeting in June. The review aims to rationalise certain provisions based on industry and investor feedback. "After six years we have found that there are certain things which need to be rationalised," he said, adding that proposals would be put out for public consultation in a single comprehensive paper.

 

The regulator has already completed reviews of mutual fund and stock broker regulations and is working on other frameworks in a similar spirit, he added.

 

The portfolio management services industry has seen strong growth in recent years, with assets under management more than doubling since fiscal 2021. Pandey stressed that durable growth would depend on governance, risk management and investor-centric conduct rather than market momentum alone.

 

On the ban on certain agricultural commodity futures, Pandey said SEBI is working with the concerned government ministries to review the restrictions. "I think we are working with the concerned ministries of the government to see that this particular thing is reviewed," he said, responding to a query on the impact of the ban on the agri-ecosystem.

 

The government had suspended trading in select agricultural futures contracts in recent years to curb price volatility, a move that exchanges and market participants have said has affected price discovery and hedging activity.

 

Responding to questions on an alleged fraud at IDFC FIRST Bank, Pandey declined to comment on individual cases but reiterated the importance of timely disclosures by listed entities. "I would not like to comment on individual cases in these conferences, but as a general rule, disclosures are important," he said. Listed companies are required to inform stock exchanges of material events and take appropriate governance measures, he added.

 

Pandey also addressed reports of disciplinary action against a senior SEBI official, underscoring that the regulator would act firmly in cases of misconduct within its ranks. He said SEBI's employee service regulations mandate absolute integrity and that while the "vast majority" of officials uphold high ethical standards, any egregious behaviour would be dealt with stringently. "As much as externally we are expected to provide that integrity, we will have to also maintain that integrity ourselves within," he said. He added that due process would be followed, including framing of charges and giving the officer an opportunity to respond, but noted that the initial evidence in the case was "egregious enough" to warrant action.  End

 

Reported by Kabir Sharma

Edited by Ashish Shirke

 

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