Mumbai (Maharashtra) [India], February 23 : Addressing the Portfolio Managers' Conclave in Mumbai, SEBI Chairman Tuhin Kanta Pandey on Monday painted a robust picture of the nation's financial trajectory, asserting that the country is set for a historic shift in wealth dynamics.
He highlighted that "India remains among the fastest growing major economies," and emphasised that the nation "remains on the trajectory to becoming the world's third largest economy."
This macroeconomic climb is expected to fundamentally alter the investor profile in the country, as Pandey noted that "this growth will also bring a rise in the number of affluent investors."
According to the Chairman, this new class of high-net-worth individuals will require more than the traditional investment avenues currently available to the masses. He stated that these investors "seek professionally managed investment solutions" because they are increasingly looking for sophisticated strategies that go "beyond standardised products."
To meet this evolving demand, SEBI is already in the process of "undertaking reviews of LODR, settlement, and PMS regulations," specifically looking at a "rationalization based on industry and investor feedback" to ensure the regulatory framework remains contemporary and effective.
Responding to queries regarding market stability and the use of technology, Pandey said that SEBI is exploring the potential of Artificial Intelligence for "real-time detection, rather than just reactive enforcement" of market malpractices. On the regulatory front, he confirmed that a "consultation paper will be released for public input on the proposed changes to PMS regulations."
He clarified that while the "review of PMS regulations is driven by the need to rationalize certain aspects identified since 2020," the exact "scope of the PMS regulation review is not yet finalised, as proposals are still maturing."
Beyond portfolio management, the Chairman also revealed that "SEBI and RBI are jointly working on developing a corporate bond index and related products," which are intended to be "traded on exchanges." This joint effort aims to deepen the debt market, with Pandey noting that the product "falls under both jurisdictions due to trading on exchanges."
Furthermore, regarding industry concerns, he mentioned that SEBI will "examine the representations from brokers regarding RBI guidelines" concerning collateral and bank guarantees, ensuring that the regulator considers their stance on facilitating smoother proprietary trading.
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