Capital markets to play bigger role in funding economic growth: SEBI Chairman

Going forward, Ajay Tyagi said, the focus area for the Securities and Exchange Board of India (SEBI) will be strengthening the robustness of capital markets.
Securities and Exchange Board of India chairman Ajay Tyagi (Photo | PTI)
Securities and Exchange Board of India chairman Ajay Tyagi (Photo | PTI)

NEW DELHI: SEBI Chairman Ajay Tyagi said on Wednesday that a large part of the non-banking financial intermediation is happening through capital markets.

"Going forward, capital markets are going to play a bigger role in funding the economic growth," he said while addressing virtually the 18th annual capital markets conference 'CAPAM 2021 -- Beyond India@75: Accelerating Growth Through Capital Market.'

Going forward, said Tyagi, the focus area for the Securities and Exchange Board of India (SEBI) will be strengthening the robustness of capital markets.

"The household financial savings deployed in securities market is rising and sustaining it will give a tremendous boost to both the capital markets and the economy," he added.

Speaking on the IPOs, fundraising and disclosures, Tyagi said that the success of IPOs from new-age tech companies will attract more funds and help create a new eco-system of entrepreneurs and investors.

"SEBI is constantly reviewing the regime. From raising through traditional equity and debt instruments, corporates have diversified into a large number of new instruments. As the market dynamics change, even more innovative instruments are likely to appear," added Tyagi.

On the issue of corporate governance, he said while independent directors have an important role, other directors should also play a more active role in company management.

He said that there is a need to continuously improve the corporate governance standards and transparency should come from within the company itself.

FICCI President Uday Shankar said the listing of new-age companies has brought depth to the market.

"We need simplification of the listing process and should also create an efficient process for delisting," he added.

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