Sebi Chief Promises Enhanced Transparency in Markets
MUMBAI: Tuhin Kanta Pandey, the newly appointed chief of the Securities and Exchange Board of India (Sebi), has pledged to improve transparency within the regulatory framework. In his inaugural public address since taking office on March 1, Pandey emphasized the importance of trust and transparency for both Sebi and the entities it regulates. His remarks come in the wake of previous controversies surrounding the agency’s operations, particularly regarding its investigations into the Adani Group.
Commitment to Trust and Transparency
In his speech, Pandey highlighted that trust and transparency are essential pillars for a robust capital market. He stated, “A transparent and accountable regulatory framework fosters confidence and clarity in the market.” This commitment follows the tenure of his predecessor, Madhabi Puri Buch, who faced scrutiny over alleged conflicts of interest related to the Adani Group. Buch’s term ended on February 28, and she has denied any wrongdoing.
Pandey’s focus on transparency aims to bolster investor confidence, ensuring fair and efficient capital allocation. He noted that both regulatory bodies and market participants must adhere to high standards of governance and ethical practices. “For sustainable capital market growth, maintaining trust and transparency in the financial ecosystem is paramount,” he added.
Regulatory Framework Overhaul
As part of his vision for Sebi, Pandey indicated a willingness to review outdated regulations that may no longer serve their intended purpose. He stated, “If some statutes are redundant and outdated over the years and not serving any purpose, we are happy to review the same.” This approach aligns with his goal of achieving “optimum regulation” rather than maximum regulation, which he believes will enhance the ease of doing business in India.
Pandey also expressed his intention to adopt a consultative style of governance. He believes that laws and regulations are more effectively enforced through voluntary compliance. “I am looking forward to engaging with all stakeholders to discuss what more measures need to be taken to encourage voluntary compliance,” he said.
Focus on Investor Awareness and Education
In addition to regulatory reforms, Pandey underscored the importance of investor awareness and education. He remarked, “The market is not a straight path. To ensure investors are not lost in labyrinths, awareness and education are crucial.” He emphasized that an informed investor is better equipped to protect themselves in the complex financial landscape.
Sebi’s upcoming initiatives will focus on creating awareness among both existing and prospective investors. Pandey’s commitment to enhancing investor education is seen as a vital step in fostering a more informed and engaged investor base, which is essential for the overall health of India’s capital markets.
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