SEBI moving from entity-focused to activity-based regulation: Pandey

SEBI Chairman Tuhin Kanta Pandey said regulation is moving from an entity-focused framework to one based on activities and risks. He highlighted the regulator's evolving role as a market developer and investor protector, noting market cap has hit Rs 470 trillion.

Evolving Regulatory Landscape

Regulation itself has changed with the market, and it is moving from a framework that focused largely on entities to one that focuses on their activities and risks, said Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Friday.

While speaking at the ET NOW Global Business Summit, Pandey said, "We are moving from silo oversight to a more coordinated regulatory architecture. We are also moving from static rules to dynamic supervision. The regulatoris role extends beyond regulation. It is about being a market developer. A guardian of integrity. And a protector of investors."

"Regulatory consistency and proportionality matter. They are not constraints on growth. They are enablers of confidence. As markets scale, the quality of regulation becomes as important as the quantity of capital they attract," he said.

India's Next Regulatory Frontier

Speaking about India's "next regulatory frontier", Pandey said, "In the years ahead, the four Ts -- Trust, Technology, Transparency and Teamwork -- will guide our approach. The nature of challenges may evolve, but disruption itself may remain a constant. We therefore need markets that are resilient by design, capable of navigating geo-fragmentation, technological shifts, and other emerging risks, while continuing to support growth and innovation."

"Regulation can no longer be only reactive. It must become anticipatory. It must move with markets, not behind them," he said.

Unprecedented Market Growth and Participation

On the largely expanded capital market participation, he said it has grown to a scale we could not have imagined a decade ago.

"We now have about 140 million unique investors. This is financialisation in action. Market capitalisation has grown more than fourfold in the last ten years, to over Rs 470 trillion today. As a share of GDP, it has risen from around 81% in FY15 to 138% today. This is not just growth in numbers. It is a structural shift in how the economy is financed," Pandey said.

Strong Capital-Raising Momentum

He further said that capital-raising in the market has also shown strong momentum.

"In FY25, equity and debt issuances together amounted to about Rs 14.3 trillion. In FY26 to date, from April to January, an additional Rs 11.6 trillion has been mobilised, including capital raised through 329 IPOs. In 2025, India led in IPO activity globally with a record number of IPOs and stood third in terms of IPO proceeds," Pandey said.

Rise of Mutual Funds and Retail Ownership

"Mutual funds have become a major channel for household participation. Assets under management have grown from around 9% of GDP in FY15 to about 23% today. SIP assets now represent nearly 20% of total mutual fund assets. The ownership structure of listed companies is also changing. Individuals and mutual funds together now own around 21% of listed equity, compared to 13% in FY15," he added. (ANI)

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