Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey said on Friday that the markets regulator will come down very hard on market manipulation. Speaking at the FE CFO Awards on Friday, he said that while there are scams that are happening like in the case of Gensol, one should not correlate it with ‘ease of doing business’.
“Regulation-wise, there was everything in that company – a board, independent directors, chartered accountants, certified auditors and promoters who were well read, and the press was celebrating their startup… but we cannot celebrate the diversion and misuse of investment resources,” Pandey said, adding that Gensol didn’t happen due to any paucity of regulation but despite it.
“Seeking one more report or seeking four more signatures will not help,” he said.The markets regulator is also intensifying surveillance and enforcement to deter abusive practices. He underscored that while regulation is necessary, ethical behaviour must stem from values, not merely compliance. The chairman reiterated that optimal rules must remain responsive to context and risk, likening outdated norms to unused clutter that occupies critical policy space. He reinforced Sebi’s commitment to transparent market functioning, adaptive regulation and a robust investor protection framework.
Addressing the CFOs earlier in a speech, he said, “CFOs play a central role in maintaining financial discipline, transparency, and trust that form the foundation of the capital markets.” He highlighted CFO’s role as strategic leaders and custodians of governance. With over 100 consultation papers in FY25, Pandey reinforced Sebi’s commitment to consultative policymaking. He emphasised the need for optimum regulation to balance ease of doing business with investor protection.
On regulatory streamlining, Sebi’s recent decision to permit investment bankers to continue unregulated activities within the same legal entity has raised concerns about potential conflicts of interest. But Pandey clarified that strict safeguards, including mandatory disclosure would be enforced—ensuring clients are informed about whether services are regulated, and by whom.
On the issue of Sebi’s record with the Securities Appellate Tribunal (SAT), the chairman stated 90% of the judgements in 2025 went in favour Sebi’s rulings, signalling strong investigatory performance despite procedural setbacks in legacy cases. In response to speculation about the shelving of the T+0 settlement proposal, the chairman affirmed India’s leadership in adopting T+1 globally.
However, due to operational complexities — including global investor time zones — T+0 remains a technological testbed rather than an imminent goal.On FPI flows, the chairman stated that these are influenced by global factors such as Fed policy, China’s economic policies, and uncertainty around tariff policies and inflation. These factors, rather than tax issues, drive FPI movements. Over a 5-year period, FPIs have shown a net investment trend of $50 billion in India.
“Engaging with FPIs is crucial to understanding their concerns and market dynamics,” said Pandey.Meanwhile, on the NSE IPO, Sebi chairman said, “There is no obstacle that will remain in case of NSE IPO.” He confirmed that no regulatory hurdles remain for NSE IPO, with final procedural steps nearing completion. On corporate governance, Sebi chairman believes it can’t be ensured by regulation alone.
The focus should be on enforcing regulations and taking action against culprits who misuse resources for personal gain. “Swindling money, taking away investors’ money, misusing and abusing it is something which spoils the whole corporate governance. Effective surveillance, enforcement, and adjudication are key to addressing such issues,” he said.