Sebi's focus on reducing D-St compliance burden

MUMBAI: In its efforts to make investing in India easier for investors of all types, markets regulator Sebi is aiming to make IPO filing through a template , optimising existing regulations for all investors including foreign funds, it said in its annual report for FY25. Investor education, including about cyber frauds related to the securities market, is also one of Sebi's focus areas, its chairman Tuhin Kanta Pandey said in the annual report

"It is recognised that excessive or overlapping regulatory requirements can lead to increased compliance cost for intermediaries and create operational rigidities. To address this, the focus will be on identifying and removing regulatory redundancies, simplifying procedural requirements, and leveraging technology to ease the compliance burden," the report said.

Another priority area for Sebi in the current year is "rationalising and simplifying the regulatory framework for foreign portfolio investors (FPIs) with the objective of enhancing the ease of operations and encouraging long-term foreign capital flows".

The Sebi chief believes that the four pillars that would carry forward this journey of evolution of India's securities market are trust, transparency, teamwork and technology. "In India's journey to Viksit Bharat 2047, its securities market is a beacon of opportunity, innovation and trust. At the heart of this progress lies an extraordinary collaboration between Sebi, market infrastructure institutions (MIIs), market participants and most importantly, the ever-growing base of empowered investors," he said.

The report highlighted the steps it took to safeguard retail investors from trading excessively and taking higher risks in trading options on the day of the expiry. "To address this issue of overtrading in index options on expiry day Sebi has implemented measures such as rationalisation of weekly index derivative products and increasing the contract size of index derivatives," it said.


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