SEBI Leverages Technology to Safeguard Investors: Tuhin Kanta Pandey

Synopsis

SEBI Chairman Tuhin Kanta Pandey highlighted that the regulator is enhancing efficiency and transparency to protect investors using technological advancements. He emphasized the importance of investor awareness and the attraction of both domestic and foreign investments.

Key Takeaways

SEBI aims to enhance efficiency and transparency using technology.
Focus on increasing investor awareness regarding risks and wealth management.
Domestic investors play a crucial role in market resilience.
SEBI seeks to create a conducive environment for foreign investments.
Incremental reforms can also significantly improve market functioning.

Mumbai, March 7 (NationPress) SEBI Chairman Tuhin Kanta Pandey stated on Friday that the capital markets regulator is focused on enhancing efficiency and transparency to safeguard investors through technological advancements.

During a media gathering, Pandey remarked, "SEBI has implemented strategies to mitigate risks in the system aimed at protecting investors. Overall, these reforms are directed towards boosting efficiency and transparency in the market. For this, the regulator has extensively utilized technology."

He emphasized that the capital markets regulator will persist in enhancing investor awareness. There is a crucial need to educate individuals about risks, wealth management, and the optimal allocation of their capital across various segments, both equity and debt, he added.

"An informed investor is better protected. SEBI's forthcoming initiatives will focus on raising awareness among both current and potential investors," Pandey commented.

Pandey recognized the significant role that domestic investors are playing in bolstering the resilience of capital markets and mentioned that the regulator also seeks to facilitate foreign investments. He stated that to achieve the desired growth rate, "we require both domestic and foreign investments."

"At SEBI, we are aware of the importance of fostering a conducive environment to attract foreign capital. We are eager to collaborate with FPI and AIF industry participants to address their challenges and further streamline regulations to enhance operational ease," he elaborated.

Pandey also clarified that SEBI is not pursuing "maximum regulations" but rather "optimal regulations" in its market oversight approach.

He expressed his anticipation of engaging with all stakeholders to deliberate on what further actions are necessary to promote voluntary compliance.

Pandey further indicated that enhancements in the capital markets' functionality do not need to be large-scale reforms, as small incremental changes can also be significant. Looking ahead, SEBI will adopt a balanced approach to achieve its objectives, he noted.

He also pointed out that the number of unique investors within SEBI's ecosystem has surged from 49 million in March 2020 to 136 million today.

"The first ten months (April-January) of the current financial year have witnessed record equity issuance amounting to Rs 4 lakh crore, which is double that of the previous year. This access to capital markets drives economic growth," he added.