Sebi Chief on Investors: SEBI Chairman Tuhin Kant Pandey said on Monday that the market regulator is aiming to double the number of stock market investors in the next three to five years. He cited a recent survey conducted by the Securities and Exchange Board of India (SEBI), which showed the increasing curiosity of people towards investment. According to the survey, more than 20 percent of the respondents have said that they are planning to invest in the securities market through some means or the other.

Emphasis on doubling the number of share investors

When Pandey was asked what achievement he would be happy with in the next three to five years, he said, “We are hoping to double the number of investors. If we add 10 crore more investors, it will be more than the total population of many countries.” The total number of specialized investors in India stood at 122 million as of October and has seen a sharp increase since the Covid-19 pandemic in 2020.

Speaking at the CII Financing Summit, Pandey said it is the responsibility of the capital markets to bring good quality securities to the market so that investor confidence remains strong. According to him, India’s growth story is not like a bubble, but is driven by high economic growth, government reforms and ease of investment and doing business. He said that domestic investors will become a strong shield to protect the market from possible shocks in the coming times.

Aim to simplify rules

According to Pandey, SEBI’s objective is not to add new rules, but to create a rule book that is simple, risk-balanced and encourages innovation. He also mentioned some data related to increasing maturity and public confidence in the market. According to him, equity capital crossed Rs 2.5 lakh crore in FY 2025-26, while the corporate bond market reached Rs 5.5 lakh crore in just seven months. This shows that public markets are capable of meeting long-term financing needs in an effective and reliable manner.

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SEBI to Review F&O, Short-selling: Securities and Exchange Board of India (SEBI) Chairman Tuhin Kant Pandey on Friday announced that the market regulator will soon constitute a working group for a comprehensive review of the ‘short selling’ and securities lending (SLB) framework.

What is ‘short selling’?

‘Short selling’ is a trading strategy in the stock market, in which the investor tries to make profit on the possibility of a fall in the price of a share. That is, if someone thinks that the shares of a company will go down, then he borrows the shares and sells them and later buys them back at a lower price. Nasebi started the framework of ‘short selling’ in 2007, which remains almost unchanged till today.

What is SLB system?

Under the SLB system, investors or institutions can lend the shares held in their demat accounts to other investors for a fee. This transaction is done through the stock exchange platform. The Clearing Corporation provides settlement security and guarantee in this process.

Borrowed shares are often used to protect against short selling or settlement failures. According to experts, SLB provides an opportunity to investors to earn additional income from their idle shares and also helps in increasing the liquidity and efficiency of the market.

Why is review important?

The ‘short selling’ framework has not been updated since 2007. The SLB system, which was launched in 2008, is not considered fully in line with global standards despite being revised several times. Therefore SEBI now wants to thoroughly re-evaluate both these systems.

Tuhin Kant Pandey said that a comprehensive review of ‘stockbroker’ and mutual fund rules is already underway. SEBI is focusing on protecting the interests of investors and increasing market transparency. On the question asked about the outflow of Foreign Portfolio Investors (FPI), SEBI Chairman said – FPI has very strong faith in India’s growth story. Global investors remain confident in India’s economy and its long-term growth.

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NSE IPO: IPO of the country’s most stock exchange NSE can get the green signal from the stock market regulator SEBI soon. SEBI Chief Tuhin Kant Pandey has said that he will investigate the reasons for the delay in the IPO of NSE. In the year 2016 itself, the NSE filed a draft paper near the regulator to bring the IPO.

After the first board meeting of SEBI, chaired by Tuhin Kant Pandey, when he came to the media, he was asked questions about the delay in the IPO of NSE. He said, we will definitely look at this matter and the issues will try how to go away. In terms of market share, the National Stock Exchange is the largest stock exchange in the country, which has been looking for the arrival of its IPO for the last eight years.

The wait for the listing of the IPO and its shares of the National Stock Exchange (NSE) is getting longer. Investors have been waiting for it for years. Last year, Sebi told the Delhi High Court during the hearing of a case that NSE has not made any fresh demand for the no objection certificate ie NOC regarding its listing. SEBI also made it clear that the National Stock Exchange itself is responsible for the reason for the delay in the IPO process. A PIL was filed in the Delhi High Court, demanding SEBI to approve NSE IPO soon.
NSE had also received approval from SEBI years ago regarding its proposed IPO and listing of shares on the market. The NSE filed an application with SEBI in 2016 itself, which was approved by the regulator, but the draft was later returned. After the case came to light on co-location facilities, SEBI returned the draft of NSE in 2019 and asked him to file a draft of IPO afresh after completion of the investigation of the Co-Lction Facilitation case. In August 2024, NSE applied to SEBI for the Non -Old Certificate (NOC), which is still waiting for approval.

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