Too much transparency? Sandeep Parekh warns SEBI’s strict disclosure rules may backfire—hurting businesses and investors alike.
Who is Sandeep Parekh?
Sandeep Parekh, founder of Finsec Law Advisors, is a leading expert in India’s financial regulations. With deep experience in securities law, his views on market policies carry significant weight.
What’s the Issue with SEBI’s Rules?
SEBI recently tightened disclosure rules to boost transparency. But Parekh argues these changes may do more harm than good.
Also Read: SEBI’s New Era: Transparency, Trust, and Foreign Investment
Key Concerns:
- Heavy Compliance Burden – Companies now face more paperwork, raising costs.
- Unintended Consequences – Excessive disclosures could hurt competitiveness.
- Barrier for Small Players – Startups and small firms may struggle to comply.
Parekh warns that overregulation might slow down market growth. While investor protection is crucial, too many rules can discourage businesses from raising funds.
Will SEBI revisit these rules? The financial world is watching closely. For now, Parekh’s critique has sparked a crucial debate.
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