Sebi in August came out with a discussion paper to rationalize regulations, in which it also proposed changing the definition of algorithmic and proprietary trading, among other things.Pandey today said that Sebi is working to rationalize and modernize the rulebook.
“A comprehensive review of Sebi’s regulations is underway after due public consultations – an exercise designed to remove redundancy, remove ambiguity and update outdated structures,” the Sebi chief said in his address.
The process of revising mutual fund regulations was also at an advanced stage, he added. “The goal is clear: a regulatory architecture that is contextual to our current and future needs, unambiguous, easier to comply with and more effective to monitor,” Pandey said. Pandey also reiterated the importance of Indian capital markets in financing India Inc.’s needs. He said the domestic securities market has moved from being a peripheral source of finance to being a central driver of India’s long-term investment cycle.
Over the past decade, the capital markets – equity and debt together – have enabled average issuances of about Rs 9.5 lakh crore per year, Pandey said.
“This is the capital that flows widely and deeply through the circulatory system of the body economy across sectors – from manufacturing to services; from physical and digital infrastructure to connectivity and logistics; from clean energy to semiconductors; from high-end research to start-up-driven innovation; from banking and insurance to the ever-expanding fintech industry,” Pandey said.
In the current financial year, April to October of FY2026, equity capital raised has already crossed Rs 2.5 lakh crore, while corporate bond issuances have touched nearly Rs 5.5 lakh crore in the first seven months.
These numbers reflect something deeper than the market’s buoyancy, Pandey said.
Sebi is also taking steps to simplify fundraising. Sebi plans to come up with a framework to ease the fundraising process for IPO-bound companies whose pre-IPO shares have been pledged. The new framework proposed by Sebi aims to ensure that the lock-in requirements are automatically enforced even if the pledge is invoked or released, thereby avoiding listing delays.
Last week, Sebi released a consultation paper on this, seeking public feedback.
The market watchdog has also proposed to rationalize the existing content of the Summary of Offer Document. This summary will also be made available to investors separately from the Offer Document, to reduce their reliance on unverified social media or gray market tips and to encourage informed feedback from them.
“With the introduction of the Summary of Offer Document, the requirement of a Shortened Prospectus will be abolished and the compliance requirements of the issuers will be reduced,” Pandey said today.
Also read: Sebi plans a concise IPO document to engage investors
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