Exclusive: “Our responsibility is to maintain the trust of investors,” Sebi Chairman Tuhin Kanta Pandey told Anil Singhvi
In an exclusive conversation with Zee business executive editor Anil Singhvi, Chairman of the Securities and Exchange Commission of India (SEBI), Tuhin Kanta Pandey, put forward a vision for markets, regulatory reforms and investors’ protection. Pandy stressed that maintaining investors' trust remains Sebi's top priority. “Our responsibility is to maintain the trust of investors while ensuring business convenience is facilitated,” he said.
Asked about a change he hoped to bring during his tenure, Pandy said: “I believe in the institution. Over the years, Sebi has been trained by former, chair, members and employees. Now, it is our responsibility to collectively face new challenges and further strengthen the institution.”
Regarding collaboration among regulators, Pandey stressed the importance of teamwork. “We have confidence in the regulation system. Every regulator has its own jurisdiction, but many areas need coordination and understanding. Working together to manage the complexity of the financial community,” he said.
“Indeed, compliance costs can be high. That's why we are moving towards the best regulation – balancing risk management with the need to operate efficiently. This goal is to effectively regulate without overtaking benefits, ensuring that investor trust remains intact.”
During the interaction, Pandey put forward the following points:
Committed to reducing compliance costs: Tuhin Kanta Pandey
- SEBI is committed to reducing the cost of complying with smart regulations
- Strengthening surveillance to curb unregistered consultants and fake financial influencers is the main focus
- Reducing risks remains crucial, especially in high-risk areas such as futures and options (F&O) trading
- SEBI is developing regulations to encourage growth of SMEs through IPOs and improved frameworks
- Regulators are actively coordinating with tech giants like Google and Facebook to curb fraudulent financial advertising online
- Stress testing of mid-cap and small-cap stocks has begun to protect investors from market volatility
- Discussions are underway to bring a universal KYC system and to explore participation of direct foreign investors with the necessary safeguards.
What did Chairman Sebi say at NSE IPO
Pandey also addressed concerns about the upcoming NSE IPO, noting: “There is no plan to stop the NSE IPO. Our responsibility is to reduce risks and strengthen governance. Seek the necessary clarification on technical, governance and litigation issues.”
He said, underlining the importance of technology in the regulatory framework, he said: “Technology makes transparency and processes easier. Continuous investment in technology and AI training for SEBI employees is being prioritized.”
Pandy further stated that SEBI is redesigning regulations such as LODR (listing obligations and disclosure requirements) to improve corporate governance and evaluate the mutual fund industry’s requirements for a separate regulatory framework.
Regarding catering transactions, Pandy cautiously stated: “Retail investors are at high risk. Catering transactions are not lottery, considering it is dangerous. Participation should be limited to those who use it for price discovery and hedging.” He noted that new SEBI regulations have resulted in a 30% reduction in catering transaction volume.
Pandy said in short: “Investor awareness, reducing risks and maintaining trust in the market are our pillars. We have been working to enhance the role of SEBI as a safety shield for investors.”
