Sebi to Enhance Market Regulation Through Capacity Building and Technological Upgrades

Sebi to Enhance Capacity Building and Technology to Strengthen Governance and Market Regulation

The Securities and Exchange Board of India (Sebi) has announced its plan to sharpen its focus on capacity building and technology to strengthen internal governance and market regulation. Chairman Tuhin Kanta Pandey made the announcement at Sebi's 38th foundation day event on Saturday.

Sebi is recognizing the importance of new skills, data analytics, technology, and interdisciplinary thinking in the future of regulation. As a result, the market regulator has approved a series of measures to strengthen its internal governance and compliance. These measures include conflict of interest, disclosure, and recusal norms for its officials, which were approved at the Sebi board meeting in March.

Tighter Guardrails for Sebi Officials

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The Sebi chairperson and whole-time members will be subject to the same restrictions on investments and trading as other employees. Their investments in unlisted companies and other commercial ventures have to be liquidated or frozen during their tenures. The regulator will also set up a digital system to manage conflict of interest and the whistleblower system for reporting perceived, actual, and potential conflicts of interest.

In addition, the details of immovable property of the top Sebi officials, including the chairman, whole-time members, executive directors, and chief general managers, will now be publicly disclosed in the same manner as applicable for All India Services and Central civil services officers.

Tech Upgrade for Better Supervision and Efficiency

Sebi is increasingly using technology to boost its capabilities. The regulator has recently launched new platforms for communication, including SUPCOMS and an e-education portal, to help engage better with stakeholders. Sebi is also using advanced analytics, digital forensics, real-time monitoring systems, and AI-enabled platforms to improve supervision and efficiency.

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Pandey emphasized that the focus will be on simplifying regulations with the aim of improving ease of doing business for market participants. Sebi will continue to invest in technology-led supervision, strengthen governance and risk management frameworks and capabilities, and accelerate its drive to simplify and rationalize regulations for ease of doing business by all participants in the capital market.