Sebi to focus on enhanced transparency: Chief Pandey – The Times of India

MUMBAI: Markets regulator Sebi will endeavour to enhance transparency about its working including board disclosures, its chief Tuhin Kanta Pandey said on Friday. “Trust and transparency are crucial not only for regulated entities but also for functioning of Sebi as well. A transparent and accountable regulatory framework fosters confidence and clarity in the market,” Pandey said in his first public speech, after taking over as the 11th chief of Sebi on March 1.
Pandey, a career bureaucrat, replaced Madhabi Puri Buch who completed her three-year tenure on Feb 28. In mid-2024, now closed US-based short-seller Hindenburg Research had alleged that Buch had conflict of interest in Sebi’s investigations into the Adani group’s alleged corporate malfeasance because of her previous investments in the same overseas fund in which Adani had investments. Buch and the Adani group had denied all the allegations.
Calling ‘trust and transparency’ as the pillars of a healthy capital market, Pandey said for sustainable capital market growth, maintaining trust and transparency in the financial ecosystem was paramount. “A well-regulated market instils confidence among investors, ensuring fair and efficient capital allocation. Regulatory bodies, market participants, and corporates must uphold the highest standards of governance, disclosures, and ethical practices.”
Pandey also said that enhanced transparency in regulatory actions, corporate reporting, and market operations would further strengthen the trust of both domestic and global investors in India’s financial markets.
He added that as part of Sebi’s ease of doing business mandate, it will “not be looking for maximum regulation but for optimum regulation”.
“Capital market is a dynamic space, so change is imminent…If some statutes are redundant and outdated over the years and not serving any purpose, we are happy to review the same. We are open to ideas on this.”
The Sebi chief indicated that his style of functioning would be consultative in nature. “Laws and regulations are better enforced through voluntary compliance. I am looking forward to engage with all stakeholders to discuss what more measures need to be taken to encourage voluntary compliance.”
Pandey said Sebi would focus on investor awareness and education. “Market is not a straight path. To ensure investors are not lost in labyrinths, awareness and education is very crucial. An informed investor is self-protected. Sebi’s effort in days ahead is to create awareness among existing and prospective investors.”