Can SEBI’s new transparency drive rebuild trust in India’s financial markets? Here’s how the regulator is taking charge
The Securities and Exchange Board of India (SEBI) is taking steps to enhance transparency in its operations. Under its new Chairperson, Tuhin Kanta Pandey, SEBI plans to publicly disclose any conflicts of interest among its board members. This move aims to build trust in India’s financial markets and improve governance.
Why Transparency Matters
Pandey, a veteran bureaucrat, took over from Madhabi Puri Buch last week. Buch’s tenure faced criticism after allegations of conflicts of interest during SEBI’s investigation into the Adani Group. While both Buch and Adani denied the claims, the controversy highlighted the need for greater transparency.
Pandey stated, “We will reveal conflicts of interest transparently for the public.” This signals SEBI’s commitment to accountability and restoring market confidence.
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Focus on Foreign Investors
Pandey also emphasized SEBI’s goal to create a welcoming environment for foreign investors. “SEBI is conscious of the need to attract foreign capital,” he said. The regulator plans to engage with portfolio investors and alternative investment funds to address their challenges and simplify regulations.
This focus comes at a crucial time. Since September 2024, foreign investors have pulled out over $27 billion from Indian equities, causing the Nifty 50 index to drop by 15%.
Market Reactions and Future Steps
Market analysts see SEBI’s transparency push as a positive step. “Improved disclosure norms and investor engagement can restore confidence in Indian markets,” said a senior strategist.
As Pandey settles into his role, SEBI’s upcoming policies will be closely watched. His leadership will play a key role in ensuring market integrity and navigating India’s evolving financial landscape.
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