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Informist, Saturday, Apr. 25, 2026

 

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--Sitharaman: Need deeper capital mkts in order to achieve Viksit Bharat aim 
--Sitharaman: Viksit Bharat cannot be financed by public balance sheet alone 
--Sitharaman: Urge SEBI to invest substantially in public awareness 
--Sitharaman: Need more retail investor participation in bond mkts 
--Sitharaman:One successful cyberattack could disrupt mkts on national level 
--Sitharaman: SEBI must be ready to meet cybersecurity challenges 
--Sitharaman: Deeper bond mkt must include serious push for municipal bonds 
--Sitharaman: SEBI must work on credit enhancement architecture 
--Sitharaman: Deepening corporate bond mkt requires structural reforms 
--Sitharaman: SEBI should pursue consultation, involve more mkt participants 
--Sitharaman: SEBI must drive prescription of common KYC norms 
--Sitharaman:Need seamless, secure, portable KYC process across fincl sector 
--Sitharaman: SEBI should consult global counterparts more 
--Sitharaman: Soft-touch regulation, consultation must for econ efficiency 
--Sitharaman: SEBI must remain uncompromising in surveillance, regulation 
--Sitharaman: Regulation should be more sophisticated and anticipatory
--Sitharaman launches SEBI's investor awareness program 'Jagrook'
--Sitharaman: Investor protection must evolve into a developmental function
--CONTEXT: Finance Minister Sitharaman at SEBI's 38th foundation day

 

MUMBAI – Finance Minister Nirmala Sitharaman urged the Securities and Exchange Board of India to deepen its engagement with global counterparts, stressing that India's increasingly interconnected capital markets require sustained international regulatory dialogue to build investor confidence and strengthen market resilience.

 

Speaking at the SEBI's 38th foundation day on Saturday, the finance minister said regulatory conversations "cannot remain only domestic," calling for more frequent and substantive consultations with global regulators and market participants on emerging risks such as cross-border fraud, artificial intelligence in markets, and settlement interoperability.

 

Sitharaman framed her remarks within India's broader ambition of becoming a developed economy, stating that achieving the "Viksit Bharat" goal would require significantly deeper capital markets. "This journey cannot be financed by the public balance sheet alone," she said, underlining the need to mobilise private capital at scale through well-functioning and inclusive financial markets.

 

Sitharaman emphasised that deepening the corporate bond market is critical to this effort and called for structural reforms across multiple dimensions. These include improving issuance standards, strengthening secondary market liquidity, and developing a robust credit enhancement architecture to expand market access beyond top-rated issuers. She also highlighted the need for a stronger push towards municipal bonds, noting that urban infrastructure financing cannot rely solely on government resources.

 

"The journey towards Viksit Bharat will require extraordinary investment in infrastructure, manufacturing, energy transition, urban transformation, innovation and human capital, Sitharaman said. "It cannot be financed by the public balance sheet or banks alone. It will require deep, well-regulated capital markets, where SEBI's role becomes instrumental," she said.

 

In a bid to broaden participation, Sitharaman urged SEBI to encourage greater retail investor involvement in bond markets while simultaneously investing heavily in financial literacy. She launched SEBI's investor awareness programme 'Jagrook' and stressed that "investor protection must evolve into a developmental function," ensuring that increased access is matched with informed decision-making.

 

The minister also raised concerns about the growing influence of unregulated financial influencers, warning against the "monetisation of uninformed retail investor trust." Sitharaman said unlicensed advice and misleading content should not be tolerated, backing SEBI's recent actions against such entities.

 

On the regulatory front, Sitharaman advocated a balanced approach combining soft-touch, principles-based regulation with strong enforcement. "Consultation and public participation are essential for economic efficiency," she said, urging SEBI to involve more market participants in policymaking while maintaining an uncompromising stance on surveillance and enforcement.

 

She added that regulation must evolve to become more "sophisticated and anticipatory rather than merely reactive," especially as markets grow in complexity and speed. Highlighting operational challenges, Sitharaman called for the creation of seamless, secure, and portable know-your-customer systems across the financial sector. She urged SEBI to lead efforts in prescribing common KYC norms and simplifying digital processes to improve user experience and reduce duplication.

 

Talking about cybersecurity, Sitharaman warned that even a single successful cyberattack on critical market infrastructure, such as exchanges, depositories, or clearing corporations, could disrupt markets at a national level and erode investor confidence. She called on SEBI and all regulated entities to remain vigilant, noting that AI-driven tools are making cyber threats more sophisticated and harder to detect.

 

Sitharaman also pressed for greater investment in public awareness campaigns to combat the rise of fraudulent investment schemes, deepfake videos, and impersonation scams. She recommended expanding initiatives like verification tools and ensuring rapid takedown mechanisms for misleading content across digital platforms.

 

Reiterating the importance of trust in financial markets, she said that growth must be anchored in integrity, transparency, and strong governance. "We want better markets, not merely bigger markets," she noted, cautioning that scale without safeguards could undermine long-term stability.  End

 

Reported by Kabir Sharma and J. Navya Sruthi

Edited by Deepshikha Bhardwaj

 

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