SEBI Chairperson Pandey Vows to Improve Transparency and Build Trust in Regulator's Functions

New Delhi (The Uttam Hindu): India's market regulator, the Securities and Exchange Board of India (SEBI), is set to enhance transparency in its operations, including disclosing potential conflicts of interest among its board members, as part of efforts to build public trust. This announcement was made by Tuhin Kanta Pandey, who recently took over as SEBI Chairperson, replacing Madhabi Puri Buch. Pandey's remarks come after Buch, who led SEBI for three years, faced scrutiny over alleged conflicts of interest in investigations involving the Adani group. The allegations were raised following reports from Hindenburg Research, which questioned Buch's impartiality due to her previous investments. Both Buch and the Adani group have denied the claims.

In his first public address since assuming office, Pandey emphasized that SEBI would put forward a plan to openly address such conflicts of interest. He did not reference any individual case specifically but reiterated the regulator's commitment to increasing transparency.

Pandey also highlighted SEBI's focus on creating an inclusive environment for foreign capital. He mentioned plans to engage with portfolio investors and alternative investment funds to address their concerns and streamline regulations. He stressed the role of long-term foreign capital in supporting infrastructure growth, innovation, and overall development. Foreign investment in Indian markets has seen significant outflows, with over $27 billion in share sales since September 2024. This has contributed to a 15% drop in the benchmark Nifty 50 index from its record high. Pandey acknowledged the importance of both domestic and foreign capital in maintaining India's growth trajectory, stating, "As we intend to grow at the speed we aspire to, we need both domestic and foreign capital to sustain the growth momentum."