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Informist, Friday, Jun. 12, 2026

 

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--SEBI chief: IPO pipeline remains robust for next few months
--CONTEXT: SEBI Chairman Tuhin Kanta Pandey's comments at event by ET Now
--SEBI chief: Market volatility must not damage investor trust
--SEBI chief: Mkt infra entities have proceeded well with changes to board
--SEBI chief: Use of secure AI with human-in-loop approach is important
--SEBI chief: Appropiate mkt enforcement is not against mkt development
--SEBI chief: To review delisting framework further
--SEBI chief: Will work with other regulators to ease KYC norms for NRIs
--SEBI chief: F&O require development, need to have long term contracts
--SEBI chief: Exlporing digital infra to aid accreditation process for AIF
--SEBI chief: AI will be important part of regulatory agenda
--SEBI chief: To issue guidelines for responsible use of AI in markets

 

MUMBAI – The Securities and Exchange Board of India will act decisively when it sees egregious violations, manipulation, fraud, misuse of investor funds, or attempts to mislead the market, SEBI Chairman Tuhin Kanta Pandey said Friday at an event organised by ET Now. Appropriate enforcement of regulations is not contrary to market development, he said. On the contrary, it is a necessary condition for market development as well as investor protection, he said.

 

SEBI is working to improve both human and technological capacities for improved surveillance and timely enforcement, as per Pandey. The markets regulator will use artificial intelligence in its regulatory agenda of improving surveillance, risk assessment, fraud detection, and investor servicing, he said.

 

On AI, as deployed by market intermediaries and participants, and the associated risks of opacity, bias, data protection, and accountability, the chairman said SEBI will issue detailed guidelines on the responsible use of AI in capital markets. SEBI is encouraging market infrastructure institutions to ensure secure and safe AI use with a human-in-the-loop approach as part of its regulatory roadmap for the period ahead, he said.

 

On the issue of market volatility, he said it must not damage investor trust. "In volatile times, an informed investor is less likely to panic, less likely to be misled," Pandey said.

 

For SEBI, the governance of market infrastructure institutions remains one of its "biggest priorities", as per the chairman. He acknowledged that these entities "have proceeded well on strengthening their boards with appointments of new ED-level (executive director-level) positions at verticals one and two." The next phase in market infrastructure institution regulations will be guided by the recommendations of the working group constituted to draw up the five-year and ten-year roadmaps for these entities, he said.

 

On the path ahead, deepening of the cash market is a priority for SEBI, the chairman said. "The securities lending and borrowing and short-selling frameworks are being comprehensively reviewed to facilitate interlinkage between the cash and derivatives markets and enhance liquidity," he said. The equity derivatives market, too, needs to develop further through a pick-up in participation in long-term contracts, he indicated. In commodity derivatives too, "longer-term and newer forms of contracts in this space will be required going forward", he said.

 

SEBI is currently reviewing the listing regulations "to make (them) more responsive to emerging governance and disclosure requirements", Pandey said. Along with this, SEBI will "review the delisting framework further", he said.

 

In the case of foreign investors, SEBI will continue to review disclosure requirements based on risks and simplify the know-your-client process, the chairman said. An effort is underway among regulators, including SEBI, to ease the know-your-client process for non-resident Indians, he added.

 

Given the momentum in the accredited investor framework for investing in alternative investment funds, SEBI is "exploring ways to leverage digital public infrastructure to further streamline the accreditation process", Pandey said. On the relatively subdued initial public offering market in Apr-May, the SEBI chairman said there is a strong pipeline of public issues for the coming months.  End

 

Reported by Rajesh Gajra

Edited by Rajeev Pai

 

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