Reiterating the Securities & Exchange Board of India’s (SEBI) approach towards optimum regulation, chairperson Tuhin Kanta Pandey on Thursday said rapid changes may create regulatory uncertainties at a time when the industry is facing global headwinds.
He was speaking at an event to mark the completion of 150 years of the BSE. “We must, therefore, move forward with the “optimum regulation” approach, which is mindful of the cost of compliance while exploring alternatives to achieve our objectives.”
He said SEBI will be looking to review its existing regulations, weed out outdated one and rationalise those which may be necessary. “We will intensify our consultations with stakeholders in this regard to prepare a pragmatic roadmap for our objectives of simplified, yet effective, regulations. Moreover, under the auspices of FSDC, chaired by the finance minister, we have a robust institutional mechanism for financial regulators to come together for harmonisation of policies and regulations, ease of doing business and reducing the cost of compliance.”
Pandey said market infrastructure institutions (MIIs), acting as first-level regulators, have been instrumental in ensuring that SEBI meets its triple mandate of investor protection, development and regulation of the securities market.
“We have encouraged healthy competition between MIIs as it increases operational efficiency, encourages innovation, leads to better investor experience and provides for natural back-ups,” he said.
In view of the rapid progress being made in artificial intelligence and quantum computing, securities markets will also undergo a change, the SEBI chief said. “We need to be prepared, both for the opportunity these technologies offer as well for risks that may arise.” Even as MIIs innovate, they must ensure that investor protection and overall trust in the system remain their top-most priorities, he said.