Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey emphasized that trust remains the cornerstone of India's capital markets during his address to newly inducted officers at the National Institute of Securities Markets. According to reports from Business Standard, Pandey highlighted the critical importance of maintaining trust through fairness, reliability on disclosures, and ensuring that everyone in the markets operates under the same rules.
Pandey outlined significant technological advancements at Sebi, stating that the organization has moved from paper-based files to 'eOffice' ecosystem, making processes more efficient, transparent and responsive. As reported by Business Standard, he emphasized that while technology can process information at extraordinary speed, judgement, fairness, and wisdom will always remain human responsibilities. The Chairman stressed that integrity, objectivity and public interest must guide regulatory decisions in the evolving market environment.
The Sebi Chairman's address focused on maintaining market confidence through consistent regulatory frameworks. According to Business Standard, Pandey highlighted the growing role of technology while ensuring that regulatory decisions remain grounded in fundamental principles. His emphasis on trust as the foundation of capital market operations reflects Sebi's commitment to maintaining investor confidence and market stability in India's evolving financial landscape.
While Sebi maintains regulatory oversight of the unlisted market, its involvement is more limited compared to listed markets. Key regulatory aspects include mandatory 6-month lock-in periods, stamp duty requirements, and depository participant charges for every transaction. However, SEBI does not have specific regulations for becoming an unlisted broker, leaving the accreditation process unregulated. This regulatory gap highlights the importance of due diligence by investors when engaging with unlisted brokers, as these transactions operate under different frameworks than listed securities.
Investing in unlisted companies like Anand I Power Limited carries specific risks that differ from listed securities. Key risks include liquidity constraints, price volatility, regulatory uncertainties, limited information availability, and no guarantee of future listing. These factors make unlisted investments more complex and require careful consideration of the company's specific risks based on industry positioning and management quality. The regulatory framework for unlisted markets, while providing some protection through lock-in periods and transaction charges, remains less comprehensive than listed market oversight.
