NewKerala.com

FM Sitharaman Calls for Better Markets, Not Just Bigger Ones

Finance Minister Nirmala Sitharaman stressed the need for better, not just bigger, capital markets at SEBI's 38th foundational day. She warned that size without integrity leads to fragility and called for quality-driven growth. The minister highlighted the need for deep, well-regulated markets to finance India's development goals. She also urged SEBI to enhance global regulatory coordination and bolster defences against AI-powered cyber threats.

Key Points: FM Sitharaman: Build Better Markets for Quality-Driven Growth

  • FM Sitharaman emphasizes quality over scale in capital markets
  • She calls for integrity-driven growth and investor protection
  • SEBI urged to strengthen global regulatory consultations
  • AI-driven cyber threats require faster defence evolution
2 min read

Build better markets, not merely bigger markets: FM Sitharaman calls for quality-driven growth

Finance Minister Nirmala Sitharaman urges SEBI to prioritize integrity and investor protection over market size at the 38th foundational day event.

"Above all, we want better markets, not merely bigger markets. Size without integrity is fragility. Volume without investor protection is exploitation. - Nirmala Sitharaman"

Mumbai, April 25

Calling for integrity-driven growth in India's capital markets, Finance Minister Nirmala Sitharaman said that the country's financial future depends on building stronger, more transparent markets rather than simply scaling them up.

Speaking at SEBI's 38th foundational day event here, FM Sitharaman stressed quality over sheer expansion.

"Above all, we want better markets, not merely bigger markets. Size without integrity is fragility. Volume without investor protection is exploitation," FM Sitharaman said.

"Growth without governance is unsustainable. And ensuring that is definitely a shared national priority and responsibility," the finance minister added.

FM Sitharaman said that the journey towards Viksit Bharat will require extraordinary investment in infrastructure, manufacturing, energy transition, urban transformation, innovation and human capital.

"It cannot be financed by the public balance sheet or banks alone. It will require deep, well-regulated capital markets, where SEBI's role becomes instrumental," the finance minister stated.

Highlighting India's increasing integration with global financial systems, FM Sitharaman observed that the country's capital markets are closely linked to international investors and cross-border capital flows.

"India's capital markets are deeply connected to the world. Our investors are global, our issuers engage international pools of capital and regulatory developments in one major jurisdiction increasingly influence market practice far beyond its borders," the finance minister said.

"In that context, our regulatory conversations cannot remain only domestic. I would urge SEBI to institutionalise more frequent and more substantive periodic consultations with its global counterparts and leading market participants on emerging issues such as cross-border fraud, use of AI in markets, sustainable finance disclosures and settlement interoperability," FM Sitharaman added.

The Union Minister further said that AI-led tools are making cyberattacks faster, more adaptive, scalable, and in some cases more autonomous in execution.

"Therefore, not just SEBI, but all Regulated Entities will have to remain exceptionally vigilant. The tools of attack are evolving at high speed, and the tools of defence must evolve even faster", Finance Minister Sitharaman said.

- IANS

Share this article:

Reader Comments

P
Priya S
"Better markets, not merely bigger markets" – love this line! 🇮🇳 But transparency starts at the top. Need stronger action against companies that cook books and manipulate share prices. Also, why no mention of simplifying mutual fund rules for small investors?
R
Rahul R
As someone who lost money in the Yes Bank and Adani saga, I really appreciate this focus on integrity. But talk is cheap – let's see real improvements in SEBI's investigation speed and penalties. AI threats are real, but human greed in boardrooms is still the bigger risk.
A
Aditya G
Good speech but FM forgot to mention the mess with F&O trading! Youngsters are getting addicted to options trading like gambling. SEBI should limit weekly expiries and increase contract sizes. Quality also means protecting new investors from themselves.
S
Sneha F
Viksit Bharat needs strong markets, but also need to address the trust deficit. Many small investors still don't understand how stock market works due to lack of financial literacy programs. FM should make SEBI do more investor education in regional languages.
K
Karthik V
Cross-border coordination is important, but let's be practical – other regulators like SEC won't easily share info. Focus first on cleaning up domestic issues like insider trading and shell companies. Also, please make SEBI website less clunky! 😅
R

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50