The NSE has been seeking regulatory approval for its IPO for years, following governance lapses and the co-location controversy that had come to Sebi’s attention. The exchange had first filed its draft red herring prospectus (DRHP) in December 2016, but the process was postponed due to regulatory action over allegations of preferential access to its algorithmic trading platform.In August 2024, NSE reapplied to Sebi for a fresh No Objection Certificate to proceed with the public issue. Subsequently, in October 2024, the exchange settled the Trading Access Point (TAP) architecture and network connectivity case by paying a fine of Rs 643 crore. The case concerned alleged shortcomings in the handling of cases where certain high-frequency traders were found to have abused system access.
Pandey said NSE has since taken several corrective measures, including changes in senior management, restructuring of the board, strengthening compliance frameworks and settling past regulatory issues.
Speaking about Sebi’s efforts to enforce accountability on digital platforms, Pandey said the regulator is actively monitoring social media for violations related to the securities markets. “One of the ways we do this is by looking at social media, and where we find violations, we ask the platforms to take them down,” he said, adding that more than 1,00,000 takedowns have already been carried out in the past few months.
A key part of this initiative is AI Sudarshan, an artificial intelligence-based tool developed by Sebi to identify misleading or illegal market-related content online. The system helps the supervisor to detect violations and take quick action. Pandey said the regulator has intensified coordination with law enforcement agencies across states to tackle the increase in fraud cases related to misuse of Sebi’s name and logo. The market regulator has written to all states, including chief secretaries and directors general of police, asking them to appoint nodal officers. Several states have already appointed officers and training programs have been conducted.
As part of investor protection measures, Sebi has also launched SebiCheck, a verification tool that allows investors to confirm within 30 seconds whether a bank account, UPI handle or QR code is authorized for securities market transactions. The tool has been available through Sebi’s mobile application and website since October 1, 2025.
“If money is sent to fraudulent accounts, investors get no protection. Awareness is crucial,” Pandey said, urging investors to use SebiCheck before transferring money.
On market regulation, Pandey said Sebi is not planning any immediate changes, especially in the derivatives segment. He noted that regulatory measures were introduced in October 2024, followed by additional steps in May 2025, and the final set was implemented in December 2025. “We are currently studying the post-deployment data. Once sufficient data is available, we will decide our next course of action. At this stage, we do not intend to disrupt anything,” he said.
Pandey also clarified that regulated investment options in gold, such as gold exchange-traded funds (ETFs), are functioning well, while electronic gold receipts (EGRs), while permitted, have faced operational challenges.
He further said the regulator is revamping its investor awareness strategy based on findings from a July study, which showed that outreach is more effective when delivered in multiple languages and formats. “Going forward, our investor awareness campaigns will be multilingual, multi-agency and multimedia,” he said, adding that digital formats such as short videos and films will be used to engage younger investors while ensuring the information remains accurate and complete.
(With inputs from ANI)
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