Tuhin Kanta Pandey, the newly appointed chairman of the Securities and Exchange Board of India , has outlined his vision for the regulatory body’s future, emphasising the efficacy of incremental reforms over large-scale changes. In his inaugural public address since assuming office on 1 March 2025, Pandey underscored the importance of building trust through enhanced transparency, particularly concerning potential conflicts of interest among SEBI’s board members.
Addressing attendees at a financial summit in Mumbai, Pandey stated, “Reforms need not be big-bang. Many times, small reforms cumulatively are more effective. Going forward, SEBI will use the right mix of both to achieve its objective.” This approach reflects a strategic shift towards continuous, targeted improvements within the regulatory framework, aiming to bolster market efficiency and investor confidence.
A significant aspect of Pandey’s agenda is the introduction of measures to disclose conflicts of interest within SEBI’s board. He asserted that maintaining trust and transparency extends to SEBI itself, necessitating greater openness regarding potential conflicts among its board members. “We need to be more transparent, including on various other measures, for example, on the conflict of interest of the board… And we will be coming forward with our own plan to further transparently reveal these conflicts of interest to the public,” Pandey affirmed.
This initiative comes in the wake of controversies surrounding Pandey’s predecessor, Madhabi Puri Buch, who faced allegations of conflict of interest during her tenure. Notably, in August 2024, reports surfaced suggesting that Buch continued to earn revenue from a consultancy firm while serving as SEBI’s chief, potentially violating regulatory policies. Additionally, there were claims regarding her and her spouse’s investments in offshore funds linked to the Adani Group, which was under SEBI investigation at the time. Both Buch and the Adani Group denied these allegations.
The proposed framework for disclosing conflicts of interest aligns with SEBI’s existing Code on Conflict of Interests for Members of Board, which aims to uphold the integrity of the regulatory process. By making such disclosures public, SEBI seeks to enhance stakeholder trust and demonstrate its commitment to ethical governance.
Pandey also addressed concerns from foreign portfolio investors and alternative investment funds regarding operational challenges. He acknowledged the need to create an inclusive environment that facilitates foreign capital inflow, which is crucial for infrastructure development and economic growth. “We will look into operational difficulties faced by foreign portfolio investors and alternative investment funds,” Pandey assured, indicating SEBI’s responsiveness to the needs of international investors.
The Indian financial markets have experienced volatility in recent months, with the benchmark Nifty 50 index witnessing a decline over five consecutive months, resulting in a significant erosion of investor wealth. This downturn underscores the necessity for regulatory measures that can stabilise the market and restore investor confidence.
Pandey’s emphasis on “optimum regulation” reflects a balanced approach to oversight, aiming to protect investors while fostering market growth. He highlighted SEBI’s role in reducing systemic risks and enhancing market efficiency through well-calibrated reforms. “SEBI has taken measures to reduce risk in the system to protect investors. Broadly, the reforms are aimed at improving efficiency,” Pandey noted.
The new chairman’s vision indicates a departure from the pursuit of headline-grabbing reforms, focusing instead on a series of smaller, cumulative changes that collectively enhance the regulatory landscape. This strategy acknowledges that sustained improvements often result from continuous, incremental adjustments rather than sporadic, large-scale interventions.
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