SEBI Focuses on Capital Market Resilience and Investor Protection, Says Chairman Tuhin Kanta Pandey

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey stated on Saturday that the regulatory body is continuously working to make the country's capital markets more accessible, efficient, and resilient. Speaking at the Bharat Chamber of Commerce Investors Forum, Pandey outlined a core approach centred on facilitating capital formation, improving the ease of doing business, and strengthening investor protection.

Highlighting market growth over the past decade, Pandey noted that market capitalisation has expanded strongly, with companies raising on average more than ₹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.

Focusing on regional economic growth, the SEBI chairman pointed out that participation from West Bengal has expanded considerably. The number of investors in the securities market from the state has increased from approximately 12 lakh in the 2015 financial year to over 90 lakh. Of these, roughly 36 per cent are young investors below the age of 30.

Additionally, data shared at the forum showed that 379 listed companies currently maintain registered offices in West Bengal. Furthermore, over 40 Micro, Small, and Medium Enterprises (MSMEs) from the state have accessed capital markets to raise over ₹1,400 crore through SME initial public offerings (IPOs).

To reduce compliance burdens and improve operational efficiency, Pandey outlined several steps taken by SEBI to simplify and lower the cost of fundraising. These measures include streamlining IPO processes, shortening timelines for rights issues, rationalising listing requirements for large issuers, and permitting certain employee stock options after listing under prescribed conditions. Other steps involve reducing listing timelines for public issues, enabling debt securities with lower face values, and relaxing mandatory merchant banking requirements for eligible issuers undertaking private placements.

On the investor front, Pandey emphasised that financial education and protection remain paramount, noting that an informed investor serves as 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 added.

"SEBI's ongoing efforts to ease compliance burdens and streamline fundraising processes are positive steps for the broader business ecosystem. For growing companies and MSMEs looking to access capital markets, reduced listing timelines and simplified procedures will lower operational friction. At the same time, maintaining a strong focus on investor protection and financial education ensures that market expansion remains sustainable and transparent for new retail participants entering the ecosystem." — Dr. Shishir Gupta, Founder & CEO, StartupLanes