SEBI Launches Capital Market Reforms to Simplify Compliance

The Securities and Exchange Board of India is launching a series of capital market reforms designed to simplify regulatory compliance, increase liquidity in corporate bonds, and expand investor access. Chairman Tuhin Kanta Pandey announced these priorities during the Financial Express Modern BFSI Summit 2026 in Mumbai.

Key initiatives include a comprehensive review of the Listing Obligations and Disclosure Requirements framework and the small and medium enterprise IPO framework. The regulator is also developing a market-making framework for corporate bonds to improve liquidity. To modernize the system, the agency is piloting the secondary-market trading of tokenized corporate bonds via Demat 2.0 and exploring an artificial intelligence sandbox to test innovations in a controlled environment.

Pandey stated that the regulator aims to reduce complexity while maintaining that investor protection and market integrity remain non-negotiable. He emphasized that technology allows the agency to build safeguards directly into market systems to prevent risks before they become problems.