Sebi chairman Tuhin Kanta Pandey says the regulator will consult on easing unnecessary compliance burdens while strengthening routes for companies to raise capital.
Tuhin Kanta Pandey has said the Securities and Exchange Board of India will revisit rules that make the Indian market less attractive to overseas investors, as the regulator looks to bring its framework closer to global practice. Speaking at the Business Standard BFSI Insight Summit 2026 in Mumbai, the Sebi chairman said the watchdog would publish a consultation paper on areas where compliance requirements may be unnecessarily heavy and where India can improve ease of access for foreign portfolio investors.
Pandey told Business Standard that Sebi had already held wide-ranging talks with foreign portfolio investors and other international market participants and had acted on several concerns linked to market access, settlement and onboarding. He said the regulator had introduced changes including a revised block window framework, an option window for cash equities and net settlement of funds for eligible foreign investor transactions in the cash market, with the last of those due to take effect in December. Sebi has also moved to simplify registration through a common application form covering FPI registration, bank accounts and income-tax requirements, while digital powers of attorney have been allowed to remove the need for apostille certification.
The chairman also used his remarks to underline how much India’s capital markets have expanded, saying the market capitalisation-to-gross domestic product ratio has risen from 69% in FY16 to about 130%, while outstanding corporate bonds have reached nearly ₹61 trillion. He said mutual funds have been growing at roughly 20% a year over the past decade and now account for about 23% of GDP, with average monthly systematic investment plan contributions in FY27 to September at around ₹32,000 crore. In his view, banks, equity markets, debt markets and investment funds all need to work together to meet the country’s financing needs, especially as infrastructure and corporate funding requirements deepen.
Pandey said Sebi has also been trying to widen the range of capital-raising routes available to companies. He pointed to streamlined initial public offering and rights issue procedures, shorter listing timelines for debt securities and new flexibility for some smaller private placements. The regulator has also relaxed rules for certain unlisted debt securities, worked on faster fund launches in the alternative investment fund segment and introduced measures such as a single filing system for listed companies, a simplified accreditation framework, specialised investment funds and the route for investing in mutual fund units.
He said Sebi is now reviewing the small and medium enterprise listing framework, including whether eligibility should be tied to post-issue market capitalisation and whether larger issuers should be required to follow Indian Accounting Standards. The regulator is also examining how to improve liquidity and lower issuance costs, while keeping governance standards strong as companies grow. Pandey said India has more than 600,000 companies and should aim to bring at least 2,000 firms with strong corporate standards to public markets. He also said Sebi wants closer monitoring of IPO proceeds, with third-party monitors reporting directly to stock exchanges if issuers fail to cooperate, so investors can better judge whether funds are being used as promised.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
