“Investor protection begins with investor education. We face the onslaught of fake apps, clone websites, unrealistic performance claims and unregistered entities misleading investors. Unregulated influencers pose a direct risk to investors, with 62% making investment decisions based on their recommendations, as the Sebi survey points out,” Pandey said at the CNBC-TV18 Global Leadership Summit 2025.
He said Sebi is actively monitoring social media for misleading content, and more than 1 lakh such items have been escalated for taking down from social platforms.
“Potential investors are being held back by perceived risk aversion, perceived complexity, and a lack of trust. Secondly, there is an opportunity to bring new investors into the fold,” he said while highlighting Sebi’s role as not just a guardian of trust but also as a facilitator of capital formation.
Pandey underlined that the health of India’s primary market remains robust, with Rs 2 lakh crore already raised from public issues this year. “We will continue to streamline the capital-raising process,” he said, noting that the regulator’s ongoing reforms aim to make India’s markets faster, more transparent, and more inclusive.
He described India’s domestic capital base as a “deep well waiting to be deployed”, indicating the growing strength of household savings and local institutional participation in driving market momentum.
Weekly F&O expiry
The Sebi chief said that the regulator will soon finalise an options framework, one that aligns with global standards but remains “tailored to India’s needs.”
“Derivatives play a vital role in price discovery,” Pandey said, adding that Sebi’s approach to futures and options (F&O) will be “calibrated and data-based.” A discussion paper outlining this approach is expected soon.
Pandey also confirmed that weekly F&O is working well, providing certainty to market participants.
Short-selling, SLBM, and buybacks under review
Pandey acknowledged that India’s securities lending and borrowing mechanism (SLBM) remains underdeveloped compared with other jurisdictions. To address this, Sebi will comprehensively review the short-selling and SLBM frameworks.
He also said the regulator would examine buyback norms to enhance transparency and investor confidence.
MF TER
On regulatory costs and caps, Pandey struck a balanced tone: “The cap is a cap, it’s a ceiling. We are discussing whether the ceiling is too low. Transparency in costs remains non-negotiable.”
He reiterated that Sebi’s regulatory stance is one of ‘optimum regulation,’ neither too tight nor too loose, designed to make India’s markets ‘future-ready.’
Pandey also pointed to the need for further deepening of India’s bond market, saying that while several measures have been taken, “much remains to be done.”
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He added that Sebi will soon undertake a review of the Listing Obligations and Disclosure Requirements (LODR) framework, a key regulation governing listed companies, to strengthen corporate governance and transparency.