India’s regulator SEBI is taking a cautious, data-driven approach to assess the impacts of the new Common Account Statement (CAS) system, as it gathers feedback and explores technological innovations like AI to ensure market stability and attract foreign investment.
Tuhin Kanta Pandey, the chairman of India’s Securities and Exchange Board, said it is still too early to judge whether market participants have fully adjusted to the Common Account Statement, or CAS, system. According to the remarks reported by Business Today, the regulator is continuing to collect feedback and study how the framework is working in practice before deciding whether any changes are needed.
Pandey said SEBI is analysing data on the system’s impact, including information tied to expiry dates, to understand whether CAS is affecting the market in the way intended. He added that no concerns over tracking errors have emerged so far, but the regulator is still monitoring the arrangement closely.
He also said SEBI is listening to market participants and reviewing comments circulating on social media, along with other suggestions it has received, to separate workable improvements from ideas that are less practical. In his view, the market is still in the process of understanding the new structure, and the regulator wants more evidence before taking a final view.
The broader message from Pandey is that SEBI is sticking to a measured, data-first approach across several policy areas. Business Standard reported in June that he was also reviewing the short-selling and securities lending and borrowing framework as part of efforts to deepen capital markets, while Moneycontrol quoted him in July as saying there were no immediate plans for fresh curbs in futures and options trading. Separately, he has stressed the importance of trust in market operations and said the regulator is increasingly using artificial intelligence to spot misconduct in real time. He also said attracting foreign portfolio investment remains important, and that SEBI will consider whether CAS can support that goal.
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