Investor-Friendly Move: SEBI Focuses On Efficiency, Consolidated Financial Statements And Lower Regulatory Burden

SEBI Focuses on Cutting Compliance Costs to Boost Market Competitiveness

The Securities and Exchange Board of India (SEBI) is stepping up efforts to reduce compliance burdens and regulatory costs to enhance the competitiveness of the Indian securities market. SEBI Chairman Tuhin Kanta Pandey emphasized that improving cost efficiency is crucial for better access to finance across productive sectors while maintaining the core objectives of market regulation.

Speaking at the Sixth Annual International Research Conference on Securities Market (2025-26), organized by SEBI and the National Institute of Securities Markets (NISM) in collaboration with IIM Mumbai, Maharashtra National Law University, Mumbai, and NSE, Pandey highlighted the direct link between regulatory overheads and the broader economy. “Efficiency, cost efficiency of all our measures is important because if you have to build competitiveness, then obviously if there is a compliance burden on regulation, it’s too high in terms of cost and time, then obviously to that extent the competitiveness also goes down,” he said.

Regulatory Impact Assessment And Research Centre

SEBI is currently establishing a framework for regulatory impact assessment, a move earlier indicated by the Finance Minister in budget announcements. A committee chaired by the Chief Economic Advisor will provide guidance on this initiative. To support this effort, SEBI is launching a Centre for Regulatory Studies, a high-level research facility aimed at facilitating collaboration between policy schools and research institutes. The centre will study how regulations impact the market, balancing regulatory objectives with the inherent costs of compliance.

Pandey noted that while it is difficult to quantify the exact GDP growth resulting from these measures, reducing the cost of capital remains a primary goal. The initiative is expected to improve access to finance, strengthen the overall economy, and maintain market stability.

Coordination, Technical Upgrades, and Investor Convenience

Addressing the interconnectedness of the financial system, Pandey said these issues are discussed at the Financial Stability and Development Council (FSDC) level, ensuring coordination among regulators. “They are looking at various ways to collect data, push research, and then throw up ideas on how we can improve the access and reduce the cost of finance in general,” he explained.

Regarding recent technical glitches at the National Securities Depository Limited (NSDL), the Chairman confirmed the system is now functioning normally. A technical issue in the inter-depository transfer system had led to settlement backlogs, which were cleared by the weekend. SEBI now awaits a root cause analysis from the Technical Advisory Committee.

Looking ahead, SEBI aims to create a system where investors can access a consolidated statement of all financial assets across regulators, including pensions and insurance, subject to user consent. This vision reflects the regulator’s commitment to making markets more efficient, accessible, and investor-friendly.

(This Article Has Been Syndicated From ANI)