Mumbai, March 7 SEBI Chairman Tuhin Kanta Pandey said on Friday that the capital markets regulator aims to improve efficiency and transparency to protect investors with the support of technology.
Speaking at a media event here, Pandey said, "SEBI has taken measures to reduce risk in the system to protect investors. Broadly, the reforms are aimed at improving efficiency and transparency in the market. For this, the regulator has used technology in a big way."
He said the capital markets regulator would continue to work on enhancing investor awareness. There is a need to make people aware of risk, wealth management and how to balance the two by knowing how best to allocate their capital across segments, both equity and debt, he added.
"An informed investor is well protected. SEBI's efforts in the days ahead would be to create awareness among both existing and prospective investors," Pandey remarked.
Pandey acknowledged the role that domestic investors are playing in improving the resilience of the capital markets and said that the regulator also wants to support foreign investments. He said that, to grow at the speed that is aimed for, "we need both domestic and foreign investments".
"We at SEBI are conscious about the need to create conducive environment to attract foreign capital. We will be happy to engage with FPI and AIF industry participants to address their difficulties and further rationalise regulations to promote ease of operation," he said.
Pandey also said that the SEBI won't be aiming for "maximum regulations" but for "optimal regulations" in its approach to oversee the markets.
He said that he looks forward to engaging with all stakeholders to discuss what more needs to be done to encourage voluntary compliance.
Pandey further stated that reforms to improve the functioning of the capital markets need not necessarily be big band reforms as small incremental reforms can also be important. Going forward, SEBI will use a right mix to both to achieve the objective, he added.
He also highlighted that the number of unique investors in SEBI's ecosystem has surged from 49 million in March 2020, to 136 million now.
"The first 10 months (April-January) of the current financial year has seen record equity issuance valued at Rs 4 lakh crore which is twice that of the previous year. This access to capital markets drives economic growth, he added.
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