SEBI Chief Tuhin Kanta Pandey Calls for Vision-Led Regulation as Markets Navigate Global Volatility

Speaking at SEBI's Foundation Day event in the presence of Finance Minister Nirmala Sitharaman, Pandey noted that while the global environment remains unpredictable, India's markets have shown resilience. "That resilience reflects years of institution-building, sound regulation, and the strength of the frameworks we have put in place," he said, adding that this foundation has sustained capital formation and market activity even in turbulent times.

Reflecting on SEBI's evolution since April 12, 1988, when it was established with a mandate to regulate, develop and protect the securities market, Pandey highlighted the transformation from open-outcry trading and limited transparency to real-time, technology-driven markets with widespread participation and global integration. The shift, he said, has been enabled by foundational reforms including screen-based trading, dematerialisation, rolling settlements, stronger corporate governance and robust risk management.

But he stressed that the real foundation lies in collaboration. "The contributions of SEBI colleagues, exchanges, depositories, clearing corporations, intermediaries, and other market participants have been remarkable. Equally, the support of the Government, fellow regulators, professionals, and the media has been invaluable," he said. Above all, he added, it is the trust of investors that has brought SEBI to this point -- a trust that "is earned over time and protected every day."

Pandey underscored the scale and depth of India's securities market today. With over 5,900 listed companies and more than 140 million unique investors, market capitalisation has grown at around 15% CAGR over the last decade, while mutual fund assets have expanded at over 20% annually. The corporate bond market continues to grow steadily, and the primary market facilitates nearly Rs10 trillion in capital formation each year.

More significant than the numbers, he said, is the change in participation. A new generation of digitally connected and informed investors is entering the market, while technology is reshaping trading, distribution and advice. Capital flows are more global and risks more interconnected, making the market more dynamic but also placing greater responsibility on regulators to ensure that innovation does not outpace safeguards.

In the past year, SEBI has focused on simplifying and rationalising regulations to ease doing business, removing ambiguities and facilitating capital formation. It has also introduced investor protection measures that Pandey said could serve as models for other jurisdictions.

Looking ahead, Pandey laid out SEBI's priorities: accelerating regulatory simplification, fostering innovation for market development, investing in technology-led supervision, and strengthening governance and risk management. The regulator is already transitioning to an e-office environment and building capacity in data analytics, technology and interdisciplinary thinking. Internal governance has been bolstered following High-Level Committee recommendations on conflict of interest and disclosures.

Technology is increasingly central to SEBI's work, with advanced analytics, digital forensics and AI-enabled platforms enhancing both supervision and efficiency. New platforms such as SUPCOMS and an e-adjudication portal have been launched to improve stakeholder engagement.

Pandey also called on industry participants to move beyond compliance to a deeper commitment to fairness, integrity and innovation, and urged intermediaries to recognise their role as the first point of trust for investors. Investors, too, must remain aware and responsible, he said.

Closing his address, Pandey said institutions are defined not by years but by credibility -- built step by step through reform and decision-making. "The coming years will demand not just regulation, but vision. Not just oversight, but insight. And not just individual effort, but collective commitment," he said, expressing confidence that India's securities market will not only grow but lead.

- ANI