SEBI Under Tuhin Kanta Pandey: Incremental Reform Approach
Why in the news
Early in the tenure of new SEBI chairman Tuhin Kanta Pandey, the regulator signalled a calmer, consultative style: fewer disruptive overhauls and lighter compliance, while keeping market integrity intact.
Key facts
- Philosophy: incremental reform, optimum regulation and a business-friendly climate rather than excess rule-making.
- Old rules: SEBI accepts that some regulations are outdated and is open to reviewing or dropping redundant ones; a Regulations Review Authority, as in RBI’s model, has been suggested.
- MIIs: market infrastructure institutions are to be empowered but subjected to independent external checks.
- Consultation: a regulation now requires a transparent consultative process, with 21 days for comments on proposals.
- Enforcement: uniform action, no arbitrary decisions, and room for correction on technical or procedural breaches.
Concerns
- Overlapping consultation papers may overload stakeholders.
Significance
- Participants welcomed the pragmatic approach.
- Nudging towards voluntary compliance balances supervision with market freedom.
- It could support stability and growth of the capital market.
Exam angle
- Person in the news: Tuhin Kanta Pandey, SEBI chairman.
- Consultation window: 21 days (earlier two weeks).
- Related terms: MIIs, Regulations Review Authority, voluntary compliance.