SEBI Under Tuhin Kanta Pandey: First Board Meeting Changes
Why in the news
SEBI’s new chairperson, Tuhin Kanta Pandey, chaired his first board meeting on 24 March. The decisions pointed to simpler compliance and a more pragmatic regulator that still protects investors.
Key decisions
| Area | Change | Effect |
|---|---|---|
| Board governance | New committee on conflict of interest, disclosure and ethics for board members | Senior officials, earlier outside the internal code, face scrutiny |
| FPI disclosure | Ultimate beneficial ownership threshold raised from ₹25,000 crore to ₹50,000 crore AUM (equity) | Fewer FPIs must reveal underlying investors |
| Category II AIF | Listed debt rated ‘A’ or below treated as unlisted | Eases the 50% unlisted-securities mandate; deepens bond market |
| Advisers | Investment Advisers may collect fees annually instead of by two quarters; Research Analysts get a longer window | Lighter compliance |
| Legal entity segregation | Separate entities for merchant bankers, debenture trustees and custodians deferred | Avoids a logistical burden without proven conflict |
Concerns
- A de minimis exemption for small investors was suggested so compliant FPIs are not penalised.
- Compliance burden is pushing advisers out; registered IAs dropped to 932, while unregulated finfluencers grow.
Strategic direction
- SEBI is moving from strict enforcer to a pragmatic regulator that trusts but verifies.
- Investor protection stays paramount, yet red tape and overreach are being reconsidered to favour innovation and market growth.
- The aim is an efficient, flexible, evidence-based regime.
Exam angle
- SEBI chairperson: Tuhin Kanta Pandey.
- Terms: FPI, AIF Category II, ultimate beneficial ownership.
- Registered investment advisers: 932.