Highlights
- SEBI to disclose conflicts of interest among employees to boost investor confidence.
- The regulator will focus on four core principles: trust, transparency, teamwork, and technology.
- Policy approach to balance incremental reforms with major regulatory changes.
- SEBI to prioritize investor awareness, financial inclusion, and technology-driven market efficiency.
- Commitment to fostering both domestic and foreign investments in capital markets.
SEBI’s Commitment to Transparency and Governance
In a significant move towards enhancing market transparency and investor trust, Tuhin Kanta Pandey, the newly appointed Chairperson of the Securities and Exchange Board of India (SEBI), announced that the regulatory body will disclose conflicts of interest among its employees.
Speaking at Moneycontrol’s Global Wealth Summit 2025, Pandey emphasized the importance of trust and governance standards, asserting that regulatory bodies must set the benchmark for market participants.
“Maintaining trust and transparency is paramount to instill confidence in investors. Regulatory bodies and market participants need to uphold the highest standards of governance. This applies to SEBI as well, which is why we will transparently reveal conflicts of interest within the Board,” Pandey stated.
This unprecedented step by SEBI aims to eliminate concerns regarding potential biases in decision-making, ensuring that the regulator maintains neutrality and integrity in its operations.
Four Pillars of SEBI’s Future Strategy: Trust, Transparency, Teamwork, and Technology
Pandey reiterated SEBI’s commitment to its core philosophy, focusing on four key pillars:
1. Trust
- The regulator aims to strengthen investor confidence by ensuring fair practices.
- Emphasis will be placed on creating a regulatory framework that protects market participants while promoting growth.
2. Transparency
- SEBI will adopt open communication policies and increase disclosure norms.
- The regulator will introduce clearer frameworks for governance, market oversight, and compliance reporting.
3. Teamwork
- Pandey highlighted collaborative efforts within SEBI and with market stakeholders, including investor bodies and financial institutions.
- He coined the phrase “SEBI plus others”, indicating a participative approach to policymaking.
4. Technology
- SEBI will leverage technological advancements to improve market efficiency.
- The regulator has already implemented tech-driven reforms to mitigate systemic risks and enhance operational transparency.
Balanced Approach to Regulatory Reforms
In discussing SEBI’s approach to policymaking, Pandey clarified that not all reforms need to be “big bang” changes. Instead, he advocated for a combination of gradual and significant reforms to ensure sustainable market growth.
“Many times, small reforms cumulatively create a greater impact than a single large reform. SEBI will strike a balance between major policy shifts and incremental adjustments to achieve optimal regulation,” Pandey said.
This perspective suggests that the regulator will avoid over-regulation and instead focus on practical, adaptive changes that align with market needs.
Investor Protection and Financial Awareness as Core Priorities
Pandey stressed the importance of investor education, noting that well-informed investors are better protected against market risks.
- SEBI will expand awareness initiatives to educate investors on:
- Risk management strategies.
- Wealth preservation techniques.
- Capital allocation across equity and debt markets.
- The regulator will focus on financial inclusion, ensuring greater participation from retail investors in capital markets.
“An informed investor is a protected investor. SEBI’s goal is to create awareness among both existing and prospective investors to empower them with the right financial knowledge,” he added.
Encouraging Foreign and Domestic Investments for Market Growth
India’s capital markets have demonstrated resilience, with domestic institutional investors (DIIs) playing a crucial role in absorbing market fluctuations. However, Pandey emphasized the need for a balanced investment approach, where both foreign and domestic capital inflows contribute to growth.
“To achieve our targeted economic growth, we need both domestic and foreign investments. SEBI is committed to creating a conducive environment to attract foreign capital,” he stated.
SEBI will work closely with Foreign Portfolio Investors (FPIs) and Alternative Investment Funds (AIFs) to:
- Address regulatory concerns and operational challenges.
- Simplify compliance norms to improve the ease of doing business.
- Ensure a predictable and investor-friendly regulatory framework.
Technology-Driven Reforms to Strengthen Market Infrastructure
Technology remains central to SEBI’s strategy for enhancing market efficiency and reducing systemic risks. Pandey highlighted that the regulator has already implemented various tech-driven measures, with more reforms in the pipeline.
“SEBI has taken steps to reduce systemic risks and protect investors. Our reforms focus on enhancing efficiency, increasing transparency, and leveraging technology for market improvements,” he said.
Future technology-focused reforms may include:
- AI-based market surveillance systems to detect anomalies.
- Blockchain implementation for secure transaction records.
- Advanced data analytics for better regulatory decision-making.
SEBI’s Vision for a Transparent and Investor-Friendly Market
Under Tuhin Kanta Pandey’s leadership, SEBI is set to usher in a new era of transparency, efficiency, and investor protection.
By disclosing conflicts of interest, promoting teamwork, balancing regulatory changes, and leveraging technology, the regulator aims to build a resilient and trustworthy market ecosystem.
With a clear focus on fostering domestic and foreign investments, empowering investors through financial awareness, and ensuring a robust regulatory framework, SEBI is poised to play a pivotal role in India’s economic growth and capital market development.
