Tuhin Kanta Pandey, chairperson of the Securities and Exchange Board of India (SEBI), in his first speech after taking over last Saturday emphasised on more transparency for disclosure of conflict of interest of its Board to the public.
“Trust and transparency are crucial not only for regulated entities but also for functioning of SEBI as well,” Pandey said in a speech at Moneycontrol-CNBC Global Wealth Summit.
ALSO READSEBI flags insider trading violation at Nestlé India
He added that the market regulator will endeavours to bring a transparent and accountable regulatory framework that fosters confidence and clarity in the market. “We will be coming forward with our own plan to further transparently… reveal these conflict of interest, etc, to the public,” he added.
Last year, US short-seller Hindenburg Research (now defunct) had alleged Pandey’s predecessor Madhabi Puri Buch’s of conflict of interest in the Adani Group investigation. These allegations included her personal investments in an offshore fund where an affiliate of the Adani Group, which SEBI was investigating, was a co-investor.
These allegations were denied by both Buch and the group.
Noting that the ease of investing through digital platforms have significantly boosted retail investor engagement, Pandey highlighted the need for both domestic and foreign capital to grow at the speed to meet the aspirations of the economy.
“We at SEBI are conscious about the need to create conducive environment to attract foreign capital and will be happy to engage with FPI (Foreign Portfolio Investors) and AIF (Alternate Investment Funds) industry participants to address their difficulties and further rationalise regulations to promote of ease of operation,” he said.
In addition, he said that the Indian economy needs long-term capital through both equity and debt issuances as a source of stable funding fostering sustainable economic growth. He focussed on products like REITs, INVITs and municipal bonds that have huge potential to boost infrastructure development in the country, as they not only provide a diversified source of funding but also reduce reliance on traditional sources of capital.
Manish Sonthalia’s 5 market insights: What every investor should know
Pandey also vouched for lesser regulation. “Capital market is a dynamic space so change is imminent but we will certainly not be looking for maximum regulation but for optimum regulation,” he said.
» Read More
