In a significant policy direction, the Securities and Exchange Board of India (SEBI) has signalled a comprehensive clean-up of outdated regulations to simplify the compliance landscape for market participants. Speaking at the Mint India Investment Summit & Awards 2025, SEBI Chairman Tuhin Kanta Pandey said the market watchdog is committed to fostering an environment that balances investor protection with ease of business.
“SEBI will weed out those (policies) that are outdated and rationalise those that may be necessary,” said Pandey, adding that this move will reduce the compliance burden and lower the cost of regulation. He emphasised that achieving “optimum regulation” remains central to SEBI’s evolving regulatory approach.
This announcement comes amid growing expectations from India’s capital markets for a smarter and more responsive regulatory environment—one that keeps pace with innovation while ensuring stability and investor trust.
Tech-Enabled Fundraising and Document Processing
In a bid to accelerate capital mobilisation, SEBI is integrating advanced technologies into its internal processes. Pandey pointed out that the regulator is using automation and artificial intelligence (AI) to expedite the scrutiny of fundraising documents without compromising on disclosure standards.
“SEBI prescribes norms for issuers of securities to ensure that funds are raised without delay and deployed efficiently,” he said. The digital transformation of document review and compliance workflows aims to support companies—especially startups and MSMEs—in accessing capital more quickly and efficiently.
Pandey also reaffirmed that the regulator is taking “all possible steps” to reduce delays and procedural bottlenecks, signalling a shift toward proactive facilitation over reactive enforcement.
Enforcement Will Be Data-Driven, Transparent
The SEBI chief underlined the importance of robust enforcement in upholding market integrity. He explained that SEBI’s enforcement efforts are grounded in a blend of off-site supervision, on-site inspections, and thematic audits, all designed to uncover misconduct and ensure compliance with existing norms.
“SEBI has to enforce these regulations to determine misconduct on the part of market participants,” he said. He further added that these efforts are supported by a continuous review of market activities, disclosures, and trading patterns.
To strengthen these efforts, SEBI plans to develop uniform compliance standards in consultation with industry stakeholders, particularly for intermediaries and listed entities. This will enhance clarity and predictability in regulatory expectations.
Social Media and Cross-Agency Collaboration in Surveillance
Pandey revealed that SEBI has stepped up its use of market intelligence tools, including the active monitoring of social media posts, to detect suspicious trading behaviours. “Market intelligence in the form of investor complaints as well as posts on social media also form an important part of SEBI’s surveillance mechanism,” he noted.
This shift toward real-time intelligence and digital surveillance is in line with global best practices. It also highlights SEBI’s readiness to evolve beyond traditional regulatory paradigms and embrace new-age tools to respond swiftly to market irregularities.
The regulator is also deepening coordination with other statutory bodies and law enforcement agencies to share data and enhance enforcement capabilities. This collaborative approach is aimed at eliminating regulatory blind spots and ensuring that market participants operate within a consistent and transparent legal framework.
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Commitment to Efficient, Trusted Markets
Pandey’s remarks reflect a broader push within SEBI to build a future-ready regulatory framework. By reducing redundant rules, leveraging technology, and enhancing market surveillance, SEBI aims to position India’s capital markets as globally competitive and investor-friendly.
As Indian markets grow in depth and complexity, such reforms are expected to support innovation, increase participation, and boost investor confidence—key enablers for India’s ambition to become a global financial hub.
