A New Beginning for SEBI
Tuhin Kanta Pandey, an experienced bureaucrat from the 1987 Odisha IAS cadre, is stepping into the role of Securities and Exchange Board of India (SEBI) Chairman at a time when the market regulator is at a critical juncture. His predecessor, Madhabi Puri Buch, left behind a legacy of stringent reforms and tech-driven initiatives, but not without controversy.
With investor confidence, mutual fund regulations, and stock market transparency under the spotlight, Pandey’s leadership will be closely watched. Here’s a breakdown of the key challenges and expectations as he takes charge.
1️⃣ Resetting Mutual Fund Regulations: Striking a Balance
Mutual fund firms often found themselves at odds with SEBI during Buch’s tenure. The biggest flashpoint? Expense ratios—Buch was firm on cutting fund management costs to benefit retail investors. However, many fund houses resisted, arguing it could hurt industry growth.
Key Expectations:
✅ A more flexible approach to mutual fund cost structures.
✅ A review of thematic NFO (New Fund Offer) regulations, ensuring they aren’t used solely for higher commissions.
✅ Boosting investor education to help retail participants make informed choices.
2️⃣ Addressing Employee Unrest at SEBI
A storm had been brewing inside SEBI under Buch’s leadership, with employees protesting against what they termed a “toxic work culture.” Officers raised concerns over an aggressive reform push and lack of internal consultation.
Tuhin Kanta Pandey, with his deep experience in governance, may bring a more harmonious and structured leadership approach. His ability to ease tensions and rebuild trust within SEBI will be crucial.
3️⃣ Striking a Balance Between Regulation and Innovation
While Buch was praised for protecting retail investors, some market participants felt her policies stifled innovation. Regulatory overreach could slow down market evolution, making it critical for Pandey to find the right mix of oversight and flexibility.
What Needs to Change?
📌 Faster approvals for new investment products.
📌 Encouraging fintech innovations while ensuring safeguards against misuse.
📌 Creating a feedback-driven policy approach where industry players have a say in regulations.
4️⃣ Unfinished Business: Disclosures, Settlements & IPO Reforms
Several pending reforms require immediate attention. Key among them is instant settlement (T+0), a move that promises near-instantaneous transactions but remains in limbo.
Top Priorities:
🔥 Stronger IPO disclosure norms to protect retail investors.
🔥 T+0 Settlement: Understanding roadblocks and accelerating adoption.
🔥 More transparency in corporate governance to prevent financial frauds.
What’s Next? The Road Ahead for SEBI Under Pandey
As Tuhin Kanta Pandey takes charge, his approach will determine whether SEBI remains a strict watchdog or evolves into a progressive enabler of financial markets. Investors, brokers, and mutual fund houses will keenly watch whether he loosens regulatory tightness or upholds Buch’s reformist legacy.
