Securities Exchange Board of India’s (SEBI) new chairman Tuhin Kanta Pandey has emphasised the need for transparency regarding conflicts of interest within SEBI’s board.

On Friday, March 7, at a Moneycontrol summit, he said that maintaining trust and transparency is crucial to the stability and credibility of India’s capital markets.

Pandey acknowledged that a well-regulated market instills confidence among investors, which is vital for continued growth.

His remarks come at a significant time, as his predecessor, Madhabi Puri Buch, has been under legal scrutiny.

The Bombay High Court recently granted relief to Buch, SEBI Whole-Time Member Ashwani Bhatia, and BSE Chairman Pramod Agarwal, staying an Anti-Corruption Branch (ACB) Court order that had directed the registration of an FIR against them.

The court noted that the ACB’s order was passed “mechanically, without going into details” and failed to attribute specific roles to the individuals involved.

This case stems from a complaint filed by journalist Sapan Srivastava. He alleged that BSE listed Cals Refineries in 1994 without ensuring compliance with SEBI’s listing regulations. The complaint claimed SEBI failed to act against BSE and Cals Refineries, leading to investor losses.

Meanwhile, Pandey also addressed the role of Foreign Portfolio Investors (FPIs) in India’s financial landscape while speaking at the summit.

While acknowledging that FPIs can be impacted by global events, he pointed out the role of domestic institutional investors in ensuring market stability.

He noted that these investors have filled the gap left by FPIs during times of uncertainty, and emphasised the need for both domestic and foreign capital to support sustainable growth.

SEBI, he said, is committed to engaging with FPIs to ease operations and ensure that foreign investment continues to play a significant role in India’s capital markets.

He further said that reforms do not need to be a “big bang.”

He stressed that bold reforms could be achieved through both large and small steps, with SEBI focusing on the right mix to meet its objectives.

Pandey also highlighted that SEBI’s efforts over the last decade have been instrumental in helping Indian companies raise significant funds through the capital markets, averaging ₹2.3 trillion annually. He pointed to the increasing participation of domestic investors, particularly through mutual funds, which have seen investments grow by 2.5 times.

He stressed that SEBI would continue to focus on the four key pillars: Trust, Transparency, Teamwork, and Technology, as it works toward creating a more efficient and inclusive market, with a long-term vision for India’s growth.