SEBI Chairman Announces Market Reforms and Inactive Company Delisting
Tuhin Kanta Pandey announced measures to simplify fundraising, protect retail investors by delisting inactive companies, and ease norms for foreign portfolio investors.
Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey announced a series of regulatory reforms aimed at making India's capital markets more efficient and resilient. Speaking at the Bharat Chamber of Commerce Investors Forum, Pandey detailed efforts to reduce compliance burdens by streamlining IPO processes, shortening rights issue timelines, and relaxing merchant banking requirements for specific private placements.
Pandey highlighted a surge in market participation, noting that unique investors have grown fourfold since FY19 to over 15 crore. He specifically cited West Bengal as a growth hub, where investor numbers rose from 12 lakh in FY15 to over 90 lakh, with 36% of those investors under the age of 30.
Expanding on investor protection, Pandey stated that SEBI is working to delist companies with no economic activity. He explained that these shell companies are often used for "pump and dump operations" coordinated via social media. To counter this, the regulator is deploying AI techniques to track suspicious accounts. Additionally, SEBI plans to release a consultation paper to ease concentration limits and disclosure requirements for foreign portfolio investors to attract more global capital.
