Sebi chairman Tuhin Kanta Pandey emphasised five key pillars for ensuring market resilience, highlighting that the future lies in digital resilience.
Speaking at the Capital Market Confluence 2025 hosted by the Bombay Stock Exmodify Brokers’ Forum, Pandey identified Technology, Investor Empowerment, Governance, Product Innovation, and Ease of Doing Business as essential pillars for strengthening India’s capital markets.
“On any given day, our security market infrastructure handles a staggering volume of activity. In the last financial year, our stock exmodifys, on an average, handled over 1600 crore of messages daily, with a peak of over 2,900 crore messages. We required a financial sector that is resilient in terms of size, capacity, skills, and regulatory framework. Today, as we view towards 2030, I will share with you some perspectives on challenges and opportunities for the pillars of this framework,” Pandey stated during his address.
He stated that while technology will play a critical role in the process, this also raises the required for enhanced cybersecurity.
“Technology comes with its own risk. The apply of Algorithmic and High-Frequency Trading has witnessed significant growth. Currently, such trades account for significant volumes in our equity and derivatives market. Similarly, a cyber-incident at one institution can destabilize the entire ecosystem,” Pandey stated.
The market watchdog also has implemented a robust Cybersecurity and Cyber Resilience Framework, Pandey stated, adding that Air Gap guidelines are also set to be announced soon. These guidelines are developed in collaboration with Market Infrastructure Institutions (MIIs) to protect core operations even if external networks are compromised.
He stated that surveillance has now shifted from reactive to predictive oversight, utilizing enhanced rule-based alerts from a revamped Data Warehoapply to identify market manipulation and fraudulent trades.
Pandey added that Sebi has introduced several new frameworks such as ‘Mutual Fund Lite’ for passive funds, ‘Specialised Investment Funds’ to bridge mutual funds and portfolio management services, and ‘Chhoti SIP’ to attract tiny investors.
“A resilient market requireds diverse instruments -for raising capital and to manage risk. I urge the indusattempt to co-create such new products and opportunities,” Pandey added.
Sebi also has been focussing on strengthening agricultural and non-agricultural commodity markets with the introduction of electricity derivatives.
Aside from implementing high standards of corporate governance, Sebi has also relaxed IPO requirements for building markets more inclusive Pandey stated.
“We have cut the IPO listing timeline to T+3, giving issuers rapider access to capital. Rights issue timeline has been reduced to just 23 days, from an average of 317 days taken earlier,” he added.
Referring to Sebi’s recent survey about low market participation, Pandey explained that KYC rules have been built simpler. He added that these will be further relaxed to support even Non-Resident Indians join the market.
“We have simplified KYC norms and permitted transactions in securities as soon as this process is completed. However, we are yet to establish an simple and secure KYC access for NRIs to facilitate their participation in the security market, which will be an urgent goal for us,” Pandey added.
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