SEBI Should Minimize Appeals to Tribunal, Says Senior Official

Mumbai: A senior official from the Securities and Exchange Board of India (SEBI) emphasized the need for the market regulator to create regulations that minimize disagreements and reduce appeals to the Securities Appellate Tribunal (SAT).

Speaking at the World Hindus Economic Forum, V Sundaresan, Executive Director of SEBI, likened the regulator to a “field umpire” in a cricket game, urging it to ensure impartiality to build trust among investors. He noted, “The game will be played properly only if the umpire is impartial, which fosters confidence in the system.”

Addressing Concerns Over Tribunal Appeals
Sundaresan’s remarks come amidst growing concerns over the high number of SEBI orders being stayed or reversed by SAT. He stressed that stability is critical for market growth, likening poorly executed regulatory practices to Mumbai’s roads, which are often dug up soon after being newly laid.

Progress in Market Development
Sundaresan highlighted SEBI’s progress in fostering market development, revealing that 250 of 400 ease-of-doing-business proposals have been implemented. Public issuances by companies have surged sevenfold to 209 per year over the past three years, making India the global leader in terms of the number of issuances and the fifth largest in capital raised.

Need for Investor Participation
Sundaresan also underlined the importance of converting savers into investors, proposing strategies such as “sachetisation” to allow investments as small as ₹100 in mutual funds. Mutual funds, he noted, remain the most accessible investment vehicle for common investors.

Resilience of Domestic Investors
Highlighting the resilience of the domestic market, Sundaresan said domestic institutional investors have the capacity to absorb up to ₹20,000 crore in foreign portfolio investor withdrawals within a single month, ensuring market stability.

Low Mutual Fund Penetration
Kotak AMC’s Nilesh Shah, also speaking at the event, pointed out that only five crore Indians have invested in mutual funds. He called for greater efforts to increase financial inclusion and participation in India’s growing capital markets.

These remarks underscore SEBI’s dual mandate of fostering market growth and ensuring investor protection while addressing regulatory and operational challenges.