SEBI's Tuhin Kanta Pandey says focus stays on capital formation

SEBI chief says focus remains on facilitating capital formation, investor protection

Speaking at the 'Bharat Chamber of Commerce Investors Forum' in Kolkata, Pandey noted strong expansion of market capitalisation in India over the past decade, with companies raising on average more than Rs 10 lakh crore annually through equity and debt issuances.

"While we continue to strengthen markets for businesses, an equally important priority is investor protection. World-class markets must be not only efficient during normal times, but also resilient during periods of stress," Pandey said.

He said that the market capitalisation has grown strongly over the past decade, with companies raising on average more than Rs 10 lakh crore annually through equity and debt issuances.

"While we continue to strengthen markets for businesses, an equally important priority is investor protection. World-class markets must be not only efficient during normal times, but also resilient during periods of stress," he added.

Highlighting West Bengal's growing participation in capital markets, Pandey said the number of investors in the securities market rose from around 12 lakh in the FY15 to over 90 lakh, approximately 36 per cent of whom are young investors below 30 years of age.

Further, 379 listed companies have registered offices in West Bengal, and over 40 MSMEs from the state have accessed capital markets to raise over Rs 1,400 crore through SME IPOs.

Pandey said that SEBI has taken several steps to make fundraising simpler and more cost-effective to reduce unnecessary compliance burdens and improve operational efficiency.

These include streamlining IPO processes, shortening timelines for rights issues, rationalising listing requirements for large issuers, permitting certain employee stock options after listing under prescribed conditions and reducing listing timelines for public issues.

Further, enabling debt securities with lower face values, and relaxing mandatory merchant banking requirements for eligible issuers undertaking private placements.

Pandey emphasised that financial education and protection for investors remain paramount as informed investor serves are the first line of defence.

"Building world-class capital markets is not merely about achieving higher market capitalisation, larger trading volumes, or faster transactions. The real measure is how effectively markets connect savings with productive investment, support businesses in raising capital, and create opportunities for investors to participate in economic growth," he said.

— IANS