Indian markets are safe and strong, fundamentals intact: SEBI Chief Tuhin Kanta Pandey

He also noted growing interest in Indian listings

Barely a month into his role as the chairman of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey is setting the tone for a more transparent and technology-driven regulatory environment. In an interview with Times of India, Pandey outlined his top priorities and assured investors that Indian markets remain fundamentally strong and resilient amid global volatility.

“We have got three mandates, which are investment protection, development of markets and regulation of markets,” Pandey said. “Four elements that we will bring in are trust, transparency, technology and teamwork.”

He stressed the importance of mutual trust between SEBI and its ecosystem and said conflict of interest norms will be revisited. A dedicated committee has been formed to guide the regulator on this front. “Regulations should be optimum, which are risk-based. If you have a higher amount of risk, there should be a higher scrutiny... If something need not be micromanaged, we should not get into that,” he said, adding that outdated regulations would also be reviewed and simplified.

Speaking to TOI, Pandey said the approach would balance regulatory oversight with ease of doing business, without compromising on market integrity. “With the development of the market, there are new products, the Indian capital market is growing rapidly... There are different possibilities in the futures market, such as energy futures,” he added.

On market volatility, Pandey offered reassurance to investors. “Our payment and settlement systems are very robust. The possibility of any default is not there. The contracts will be honoured. People can enter and exit without difficulty,” he said. Citing data, he added, “From 2019 to 2024, the CAGR in India was 8.5 percent in dollar terms. In this period, it was zero for emerging markets and minus 3 percent for China.”

He told Times of India that India's strong fundamentals—including projected 6.5 percent GDP growth, a supportive budget, and accommodative monetary policy—provide a favourable environment for investors, even as global headwinds persist.

On IPO activity, Pandey acknowledged concerns around certain small issues but said the broader trend remains strong. “On the SME IPO issue, there have been changes by SEBI... On the main board, IPOs have gone up. India had the largest number of IPOs,” he pointed out.

Pandey also provided an update on other key areas, including the common Know Your Customer (KYC) initiative, which SEBI is pursuing in collaboration with the RBI. “There is good progress there... certain points need to be ironed out, which we should be able to do soon,” he told TOI.

On allowing foreign individuals to invest directly in Indian markets, the SEBI chief said the issue is under review. “The department of economic affairs is undertaking a review of Fema rules... there is the idea that investors could be directly asked to do that. But we still have to examine and deliberate,” he said.

He also noted growing interest in Indian listings, adding: “There are a lot of companies that want to list in India and we should welcome that. Reverse flipping is taking place.”

In terms of market communication and transparency, Pandey acknowledged a gap in social media presence and said SEBI has now stepped up efforts in this space. He also raised concerns over misinformation and cyber fraud. “We have taken down something like 70,000 fin-fluencers from YouTube with the help of Meta and Google,” he said, in his interview to Times of India.

On newer market instruments, Pandey said energy futures are in focus and progress is being made. However, agricultural futures remain a matter of broader policy. “Some of the important products are not available... that’s a policy call, which has to be taken by the government,” he added.

Discussing the future of faster settlements, he said, “If you ask me, T+1 is good enough,” indicating that there may not be a rush toward T+0 implementation for all stocks.

Pandey acknowledged the dual nature of artificial intelligence in capital markets. “AI has to be looked at from both sides. It has enormous potential... but AI also has certain other points, which are risks. So, we also need to evolve a risk mitigation strategy,” he told Times of India.

Addressing concerns around the Investor Education and Protection Fund (IEPF), Pandey said SEBI is exploring ways to expedite genuine claims. “We will facilitate use of registered transfer agents by IEPF for processing... in the next two months we will conduct Niveshak Shivirs in Mumbai and Gujarat,” he said.

Finally, on the growing number of retail investors, Pandey underscored the need for greater financial awareness. “People coming to the stock market is a welcome thing... but the most important thing is that people should not be borrowing to invest,” he cautioned. “On the awareness part, we would like to upscale our efforts more together as an ecosystem.”