SEBI Chairman Pandey’s Optimal Regulation Reform Plan
Why in the news
SEBI’s newly appointed chairman, Tuhin Kanta Pandey, described a major rethink of market rules to cut compliance load and bring norms up to date.
Key facts
- Approach: “optimal regulation” with less micromanagement and principle-based rules; outdated norms to be rationalised.
- Coordination: talks with the RBI and Department of Economic Affairs (DEA) to simplify foreign investment rules.
- FPI-FDI fungibility: being studied; needs changes in FEMA rules and could attract long-term foreign capital.
- Foreign individuals: direct investment in Indian equities under consideration.
Other points
| Topic | SEBI position |
|---|---|
| Futures and options | Defended steps to limit excess speculation; stress on market integrity and investor protection |
| Mutual fund TER | No immediate revisit of the plan to lower the Total Expense Ratio |
| NSE IPO | May get a go-ahead once regulatory and governance concerns are resolved satisfactorily |
Significance
- A more facilitative, investor-friendly framework, especially for foreign players.
- Aims at more accessible and globally competitive capital markets.
Exam angle
- SEBI chairman in April 2025: Tuhin Kanta Pandey.
- Terms: principle-based regulation, fungibility, TER, FEMA.