Tuhin Kanta Pandey, who recently took over as the chairman of the Securities and Exchange Board of India (SEBI), announced plans to enhance transparency in regulatory affairs, including disclosing conflicts of interest among board members. Speaking at a financial event in Mumbai, Pandey emphasized the need for both domestic and foreign capital to sustain India’s economic growth.
The Securities and Exchange Board of India (SEBI), the regulatory body overseeing the country’s securities market, is set to introduce measures for greater transparency, including public disclosures of potential conflicts of interest among its board members. The announcement was made by newly appointed SEBI Chairman Tuhin Kanta Pandey in his first public speech since taking office.
Tuhin Kanta Pandey, a veteran bureaucrat from the Indian Ministry of Finance, succeeded Madhabi Puri Buch as SEBI chief last week. Buch, who led SEBI for three years, faced criticism toward the end of her tenure following allegations by Hindenburg Research regarding a potential conflict of interest in SEBI’s investigations into the Adani Group. Both Buch and the Adani Group denied the accusations.
“We will be coming forward with our own plan to further transparently reveal these conflicts of interest, etc., for the public,” Pandey said while addressing an event organized by Moneycontrol in Mumbai.
While Pandey did not address any specific case, his statement signals SEBI’s commitment to fostering trust in the financial ecosystem by increasing transparency in regulatory operations.
Encouraging Foreign Investment
Pandey also emphasized the need to create a favorable environment for foreign investors, noting that SEBI will actively engage with portfolio investors and alternative investment funds to streamline regulations.
SEBI’s renewed focus on investor confidence comes at a crucial time, as foreign investors have sold over $27 billion worth of Indian shares since September 2024, contributing to a 15% decline in the Nifty 50 index from its record high.
“As we intend to grow at the speed we are aspiring to, we need both domestic and foreign capital to support the growth momentum,” Pandey stated. He highlighted that long-term foreign investment would play a key role in infrastructure development, innovation, and economic expansion.
With SEBI under new leadership, market participants will be closely watching how the regulatory body implements its transparency initiatives and navigates India’s evolving financial landscape.
