Exclusive: “Our responsibility is to maintain investors’ trust,” says SEBI Chairman Tuhin Kanta Pandey in interaction with Anil Singhvi

In an exclusive conversation with Zee Business Managing Editor Anil Singhvi, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey laid out his vision for the markets, regulatory reforms, and investor protection.

Pandey emphasised that safeguarding investors’ trust remains SEBI’s top priority. “Our responsibility is to maintain the trust of investors while ensuring ease of doing business,” he said.

When asked about the one change he wishes to bring during his tenure, Pandey said, “I believe in institutions. SEBI has been nurtured over the years by predecessors, chairpersons, members, and employees. It is now our responsibility to collectively face new challenges and strengthen the institution further.”

On collaboration among regulators, Pandey stressed the importance of teamwork. “We have full faith in the inter-regulatory system. Every regulator has its own jurisdiction, but many areas require coordination and understanding. It is essential to work together to manage the complexities of the financial world,” he said.

Talking about the high cost of compliance and the need to avoid overregulation, the SEBI Chairman said, “It is true that compliance costs can be high. That is why we are moving towards optimum regulation — balancing risk management with the need for operational efficiency. The goal is effective regulation without overburdening stakeholders, ensuring that investor trust remains intact.”

During the interaction, Pandey made several key points:

committed to reducing the cost of compliance 

• SEBI is committed to reducing the cost of compliance with smart regulation.
• Strengthening surveillance to curb unregistered advisors and fake financial influencers is a major focus.
• Risk reduction remains crucial, especially in high-risk segments like Futures & Options (F&O) trading.
• SEBI is working on regulations to encourage the growth of SMEs through IPOs and improved frameworks.
• The regulatory body is actively coordinating with tech giants like Google and Facebook to curb fraudulent financial advertisements online.
• Stress testing of midcap and smallcap stocks has been initiated to safeguard investors against market volatility.
• Discussions are ongoing to bring a common KYC system and explore direct foreign investor participation with necessary safeguards.

Pandey also addressed concerns around the upcoming NSE IPO, stating, “There is no plan to stop the NSE IPO. Our responsibility is to reduce risks and strengthen governance. Necessary clarifications are being sought regarding technology, governance, and litigation issues.”

Highlighting the importance of technology in the regulatory framework, he said, “Technology has brought transparency and made processes easier. Continuous investments in tech and AI training for SEBI staff are being prioritised.”

Pandey further said that SEBI is redesigning regulations like LODR (Listing Obligations and Disclosure Requirements) to improve corporate governance and is assessing the mutual fund industry’s demands for a separate regulatory framework.

On F&O trading, Pandey issued a caution, saying, “Risk is very high for retail investors. F&O trading is not a lottery, and considering it so is dangerous. Participation should be limited to those who use it for price discovery and hedging.” He noted that SEBI’s new regulations have led to a 30% reduction in F&O trading volumes.

Summarising the conversation, Pandey said, “Investor awareness, risk reduction, and maintaining trust in the market are our pillars. We are working continuously to strengthen SEBI’s role as the safety shield for investors.”