India’s capital markets regulator, (SEBI), used its 38th Foundation Day to signal a major shift in global financial dynamics asserting that India is no longer following international benchmarks but actively shaping them.
The address highlighted SEBI’s transformation into a forward-looking regulator, emphasizing a move toward technology-driven, anticipatory oversight in response to increasingly complex and interconnected global markets.
India Outpaces Global Peers
- India successfully implemented a T+1 settlement cycle in 2023, ahead of major economies like the United States.
- In FY26, more than 366 IPOs raised ₹1.9 lakh crore, underlining strong investor confidence.
- Depositories such as and collectively manage over $5 trillion in dematerialized assets.
Pioneering Financial Innovations
- Introduction of the ASBA mechanism streamlined IPO applications by eliminating refund delays.
- India became the first country to enable IPO applications via UPI, significantly boosting retail participation.
- The surge in individual investors was described as a “democratizing revolution” in financial markets.
Robust Enforcement Framework
- SEBI reported strong legal outcomes:
- 90% success rate in the Supreme Court
- 73% in the Securities Appellate Tribunal (SAT)
- 92% in civil courts and NCLT
- Increased action against unregistered financial influencers (“fin-fluencers”) reflects tighter investor protection norms.
Toward Smarter Regulation
- Shift from rigid rules to principles-based regulation.
- Greater reliance on public consultation and stakeholder engagement.
- Emphasis on global regulatory cooperation, especially around AI, fraud, and cross-border risks.
Investor Protection at the Core
- Investor trust highlighted as a critical public good.
- Focus on informed participation, not just broader access.
- Expansion of outreach initiatives such as ‘Niveshak Shivir’ to improve financial awareness.
Digital Integration & KYC Reform
- Push for seamless and portable KYC systems across platforms.
- Goal to eliminate repetitive verification processes for investors.
Strengthening Bond Markets
- Continued focus on developing corporate and municipal bond markets.
- Measures aimed at improving liquidity, standardization, and access, especially for smaller issuers.
Cybersecurity as a Critical Threat
- Warning that even a single cyberattack could disrupt national markets.
- Rising risks from AI-driven cyber threats and deepfake scams.
- Introduction of tools like “SEBI Check” to enhance investor safety.
The address underscored that India’s ambition to become a developed economy “Viksit Bharat” depends on building deep, transparent, and resilient capital markets.
The central message was clear:
“The goal is not just bigger markets, but better markets.”
Without strong governance and investor trust, rapid growth could lead to instability making integrity, transparency, and protection the foundation of India’s financial future.
