Key Points

Speaking at the BSE's 150-year celebration, the Securities Exchange Board of India (SEBI) chief said the role of the regulator is not only to ensure market integrity and promote trust, but also the development of the market.

SEBI chief said, "We must therefore move forward with the optimum regulation approach which is mindful of the cost of compliance, while exploring alternatives to achieve our objectives."

"We will be looking to review our existing regulations, weed out those which are outdated, and rationalise those which may be necessary," the SEBI Chairman added.

Pandey added that SEBI will intensify its consultations with stakeholders in this regard to prepare a pragmatic roadmap for achieving its objectives of simplified yet effective regulations.

Moreover, under the Financial Stability and Development Council (FSDC), chaired by the Finance Minister, there is a robust institutional mechanism for financial regulators to come together for the harmonisation of policies and regulations, ease of doing business, and reducing the cost of compliance in a rapidly growing securities market.

"It is also imperative to further accelerate SEBI ecosystems, ongoing efforts for investor education and awareness, including on cyber frauds and fraudulent investment advice. We will comprehensively intensify these efforts," the SEBI chief noted.

Earlier in his address, he also delved into the growth trajectory of India's financial markets.

He said Indian markets routinely handle about 2,000 crore orders and transactions, one of the highest volumes in the world.

In just five years, the number of unique mutual fund investors has grown from 2 crore to 5.4 crore. He also noted about the sharp rise in demat accounts, investment in equity-linked mutual funds, increasing FPI investments in India.

"Sustained capital formation is indispensable to our collective aspiration of Viksit Bharat. We need safe and efficient capital markets where informed investors and credible issuers come together under an optimally regulated ecosystem. While we must never grow complacent, all stakeholders in our capital markets can take pride in the remarkable journey we have traversed over the years," he said.

In his address, he also emphasised the importance of expanding investor education and awareness, enhancing cyber resilience, maintaining robust risk buffers, swiftly detecting and punishing fraudulent behaviour, and upholding the highest standards of disclosure and governance.

"Short-term or narrow commercial goals should never overshadow these foundational public interest objectives," he, however, cautioned.

- ANI