Marking 38 years since its establishment, the Securities and Exchange Board of India (SEBI) has said its credibility has been shaped by sustained reforms, institutional collaboration and investor trust, even as global markets contend with geopolitical tensions, shifting trade patterns and rapid technological disruption.
Addressing SEBI’s Foundation Day event in the presence of Finance Minister Nirmala Sitharaman, SEBI Chairman Tuhin Kanta Pandey said Indian markets have demonstrated strong resilience amid global uncertainty. He attributed this stability to years of institution-building, regulatory strengthening and robust market frameworks that have supported capital formation and sustained activity through periods of volatility.
Tracing SEBI’s journey since its formation in April 1988 with the mandate to regulate, develop and protect the securities market, Pandey highlighted the sector’s transformation from open-outcry trading and limited transparency to today’s technology-driven ecosystem. He pointed to key reforms such as screen-based trading, dematerialisation of securities, rolling settlement cycles, improved corporate governance norms and enhanced risk management systems as foundational to this evolution.
He emphasised that this progress has been driven not only by regulatory action but also by collaboration across the ecosystem. Exchanges, depositories, clearing corporations, intermediaries, regulators and other market participants, he said, have all played a role, alongside support from the government, professionals and the media. Above all, he underlined investor trust as the cornerstone of SEBI’s credibility—“earned over time and protected every day.”
Pandey noted the expanding scale of India’s capital markets, citing over 5,900 listed companies and more than 140 million unique investors. Market capitalisation has grown at an estimated 15% compound annual growth rate over the past decade, while mutual fund assets have expanded at over 20% annually. The corporate bond market, too, continues to deepen, with primary markets enabling nearly ₹10 trillion in annual capital formation.
Beyond the numbers, he said, the most significant shift has been in participation, with a new generation of digitally connected investors entering the markets. Technology, he added, is reshaping trading, distribution and advisory services, while increasing global capital flows have made markets more interconnected—and risks more complex.
On the regulatory front, Pandey said SEBI has recently focused on simplifying and rationalising rules to improve ease of doing business, remove ambiguities and support capital formation. It has also introduced investor protection measures that he said could serve as benchmarks internationally.
Looking ahead, he outlined SEBI’s priorities, including further regulatory simplification, promotion of innovation, technology-led supervision and stronger governance and risk frameworks. The regulator is also strengthening its digital infrastructure, including a transition to an e-office system and expanded use of data analytics, artificial intelligence and digital forensics.
New initiatives such as SUPCOMS and an e-adjudication platform, he said, are aimed at improving efficiency and stakeholder engagement. Internally, governance mechanisms have been reinforced following recommendations of a high-level committee on conflict of interest and disclosures.
Pandey called on market participants to go beyond regulatory compliance and embrace higher standards of fairness, integrity and innovation, noting that intermediaries serve as the first point of trust for investors. He also urged investors to remain informed and responsible as participation in capital markets expands.
Concluding his remarks, the SEBI chairman said institutions are ultimately defined not by their age but by the credibility they build through consistent reform and decision-making. “The coming years will demand not just regulation, but vision; not just oversight, but insight; and not just individual effort, but collective commitment,” he said, expressing confidence that India’s securities markets will continue to grow in depth and global relevance.
(With inputs from ANI)