Sebi chairman Tuhin Kanta Pandey made significant announcements on Friday, outlining a series of reforms aimed at transforming India's capital markets. Speaking at the regulator's Samvad annual conference in Mumbai, Pandey emphasized the regulator's commitment to making it easier for foreign investors to enter the Indian market.
Reforms to Attract Foreign Investment
Pandey stated that Sebi is actively working on reforms designed to simplify the investment process for foreign investors. He clarified that while regulatory conditions are important, factors like stock returns and global economic conditions play a more crucial role in attracting foreign funds. The Sebi chief believes these changes will enhance India's appeal as an investment destination.
Introduction of Closing Auction Mechanism
In a key development, Sebi later approved the introduction of a closing auction mechanism for stock market trading. This global best practice aims to improve price discovery at the end of the trading day. Pandey explained that this mechanism will help create deeper and more efficient markets, ultimately benefiting both domestic and international investors.
Technology Roadmap for Market Infrastructure
Pandey also revealed Sebi's plans to implement a comprehensive technology roadmap for market infrastructure institutions. These institutions include stock exchanges, depositories, and clearing corporations. The roadmap will provide a structured vision for both short-term and long-term technological advancements in the securities market ecosystem. The goal is to enhance the resilience and efficiency of India's financial markets.
Confidence in India's IPO Market
Addressing the country's initial public offering scene, Pandey expressed strong confidence in Indian markets. He noted that record fundraising from the equity market for the second consecutive year reflects issuer trust. According to Pandey, this demonstrates that Indian markets can deliver scale, efficiency, and long-term capital effectively.
The overall overhaul of market mechanisms is strategically aimed at making Indian markets more robust and attractive to foreign investors. These reforms signal Sebi's proactive approach to strengthening India's position in the global financial landscape.
