'Technology Is Trust Multiplier, Not A Showpiece...': SEBI Chief Bats For Faster IPOs, Digital Processes, And Safer Markets

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Thursday underlined the importance of innovation and technology in shaping the future of Indian capital markets.

Speaking at the 22nd Annual Capital Markets Conference (CAPAM 2025) organised by FICCI, he said reforms must lower costs, reduce risks, and widen opportunities for issuers, investors, and intermediaries.

Innovation To Lower Costs And Risks

“Innovation in the capital market must lower friction and compliance cost for issuers, investors and intermediaries, while managing the risk. It should also provide a diverse range of opportunities depending upon the risk appetite,” Pandey said.

Highlighting regulatory initiatives, he pointed out SEBI’s efforts to shorten IPO timelines, adopt digital processes, and introduce safeguards such as blocking of funds and direct payouts.

He added that from October 1, 2025, SEBI will roll out a verified UPI payment channel for intermediaries to protect investors against cyber fraud.

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Technology Is A Trust Multiplier

“Technology is a trust multiplier and not a showpiece. Indian capital markets have constantly evolved in technology,” Pandey noted.

He warned of the growing risks of fake apps and cloned websites misleading investors, adding that SEBI is working with social media platforms to remove fraudulent content. Investor awareness and education campaigns on cybercrimes, he said, will be further intensified.

Pandey also stressed that clear disclosures, regulated advice, and visible SEBI registration details on apps and social media handles are essential for building trust.

“On the industry side, we expect clean edges—no unregulated advice, clear and timely disclosures, and visible SEBI registration details on every app site and social media handle,” he said.

Responsible Use Of AI

On emerging technologies, the SEBI chief said artificial intelligence (AI) must be adopted carefully. “Adopt AI, but with safeguard,” he remarked, adding that SEBI’s guiding principles will focus on data and cyber controls with clear accountability.

Pandey also spoke about ease of doing business measures. Between March and June 2025, SEBI approved several proposals for listed companies, Alternative Investment Funds (AIFs), and Foreign Portfolio Investors (FPIs). Multiple discussion papers have also been issued to simplify rules and promote capital formation.

Growth Of Indian Securities Market

Reflecting on the growth of India’s securities market, he said the investor base has expanded to 13 crore unique investors, including 7 crore mutual fund investors, supported by a capital pipeline of ₹1.4 trillion.

He noted the rise of new asset classes such as AIFs, REITs, InvITs, SIPs, SIFs, and PMS, which are now integral to India’s capital markets.

“Transparency attracts long-term capital,” Pandey said, emphasising the need for stronger disclosures, better controls, and aligned incentives to deepen India’s capital markets further.

Equity Derivatives And Future Plans

On equity derivatives, Pandey clarified that discussions are underway on the possibility of longer-term contracts, but no final decision has been taken.

“Improving the tenure essentially means exploring the possibility of having longer-term derivatives, but this will be done only after proper consultation. This is merely a conceptual idea at this stage, not a finalised decision,” he explained.

Pandey concluded by stressing that SEBI’s focus will remain on simplifying regulations, reducing unnecessary processes, encouraging innovation, and ensuring sustainable capital formation in the face of global uncertainties.