5 things SEBI Chairman Tuhin Kanta Pandey said on IPOs, mutual funds and easier market access

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said the regulator's approach has been guided by a simple principle, “make markets easier to access and operate in, while preserving investor protection and market integrity.”

Addressing the 12th Convention of CPAI in New Delhi, Pandey said capital markets channel savings into productive investment and provide instruments for managing financial risk.

1) Simpler IPO disclosures for retail investors

In the primary market, SEBI has reintroduced open-market buy-backs through stock exchanges with a simpler process.

“We have made IPO disclosures easier for retail investors through a concise and standardized abridged prospectus at the DRHP stage,” Pandey said.

2) Changes across mutual funds and other investment products

Pandey said the same developmental approach extends to corporate bonds, REITs and InvITs.

“We have widened the investor base, introduced greater flexibility and taken measures to deepen the bond-distribution ecosystem,” he said.

Across asset management, SEBI has simplified and modernised regulatory frameworks.

For AIFs, GARUDA has sharply reduced scheme-launch timelines, with greater flexibility for funds catering to sophisticated investors.

3) SEBI's focus on investor protection

Pandey said the regulator's supervisory approach is becoming more risk-based.

“Routine and repetitive inspections of compliant entities are being reduced, while greater attention is directed towards higher-risk entities and areas,” he said.

The penalty framework for stock brokers has also been made more proportionate and predictable.

“Common compliance reporting will reduce duplication for brokers and clearing members,” Pandey said.

4) Technology and investor data protection

Pandey also highlighted the role of technology in financial markets.

“Where regulated entities use AI or machine-learning tools, responsibility for investor-data protection and for the outputs of those systems continues to rest with the regulated entity,” he said.

5) Investor awareness

Pandey said inclusion must be supported by knowledge.

“Under Project Jagrook, we will strengthen awareness regarding commodity derivatives among farmers, FPOs, MSMEs, hedgers and other market users,” he said.

“Participants must understand both the utility and the risks of these products, because access without understanding is not inclusion.”