Sebi pushes for resilient capital markets, focuses on investor protection: Chairman

Speaking on capital market expansion at the Bharat Chamber of Commerce Investors Forum here, Pandey noted that the market capitalisation has grown strongly over the past decade, with companies raising on average more than Rs 10 lakh crore annually through equity and debt issuances.

"While we continue to strengthen markets for businesses, an equally important priority is investor protection. World-class markets must be not only efficient during normal times, but also resilient during periods of stress," he said.

"Our approach has been to facilitate capital formation, improve ease of doing business, and strengthen investor protection," Pandey said, highlighting that these objectives reinforce each other.

Focusing on regional growth, the SEBI chairman pointed out that participation from West Bengal has expanded considerably, with the number of investors in the securities market increasing from around 12 lakh in the 2015 financial year to over 90 lakh today, approximately 36 per cent of whom are young investors below 30 years of age.

Additionally, 379 listed companies have registered offices in West Bengal, and over 40 MSMEs from the state have accessed capital markets to raise over Rs 1,400 crore through SME IPOs.

To reduce unnecessary compliance burdens and improve operational efficiency, Pandey said the Securities and Exchange Board of India has taken several steps to make fundraising simpler and more cost-effective.

These include streamlining IPO processes, shortening timelines for rights issues, rationalising listing requirements for large issuers, permitting certain employee stock options after listing under prescribed conditions, reducing listing timelines for public issues, enabling debt securities with lower face values, and relaxing mandatory merchant banking requirements for eligible issuers undertaking private placements.

On the investor front, Pandey emphasised that financial education and protection remain paramount, noting that an informed investor serves as the first line of defence.

"Building world-class capital markets is not merely about achieving higher market capitalisation, larger trading volumes, or faster transactions. The real measure is how effectively markets connect savings with productive investment, support businesses in raising capital, and create opportunities for investors to participate in economic growth."