Market regulator Sebi is reviewing the framework for monitoring and disclosing utilisation of issue proceeds to improve timely disclosures and streamline the compliance process, according to Sebi Chairman Tuhin Kanta Pandey speaking at the Institute of Directors' Annual Directors' Conclave 2026. As reported by The Hindu BusinessLine, this review aims to enhance the transparency and efficiency of how companies disclose how they use funds raised through public offerings. The initiative was announced by Pandey on Saturday during his address to the conclave, with the regulator specifically stating "We are reviewing the framework for monitoring and disclosure of utilisation of issue proceeds, with the objective of improving timely disclosures and streamlining the compliance process."
Pandey emphasized that transparency is not merely about the volume of information disclosed by a company but about whether the information helps investors understand what matters. According to The Hindu BusinessLine, he stated that "True transparency is not the volume of information. It is the quality, timeliness and usefulness of information." A company making a disclosure does not necessarily mean it has become transparent, highlighting that true transparency is the quality, timeliness and usefulness of information rather than just the quantity of disclosures. This approach reflects the regulator's focus on meaningful disclosure practices that actually benefit investors.
The regulator is seeking to ensure that transactions involving potential conflicts are subject to appropriate scrutiny through the framework governing related-party transactions. As reported by The Hindu BusinessLine, Pandey said "We propose to further clarify the framework on related-party transactions, so that the requirements are clear and workable for issuers while retaining the necessary safeguards for investors." This enhancement ensures that companies provide clear and timely information about significant developments affecting their operations, demonstrating Sebi's commitment to improving the quality of corporate disclosures across the market.
On corporate governance, Pandey highlighted that the boardroom was becoming increasingly complex, with directors required to assess risks arising from artificial intelligence, cybersecurity, as reported by The Hindu BusinessLine. Speaking at the Institute of Directors' Annual Directors' Conclave 2026, Pandey emphasized that corporate governance must evolve beyond a compliance-driven approach towards "stewardship", where boards focus on responsibility, transparency and long-term value creation. This evolution reflects the changing landscape of business operations and the need for boards to adopt a more strategic and forward-looking approach to governance.
On regulatory compliance, Pandey highlighted that good governance also requires regulation to remain proportionate and avoid unnecessary duplication. As reported by The Hindu BusinessLine, Sebi is proposing a framework to avoid duplication of fines levied by multiple exchanges on entities listed on more than one exchange for the same matter, with the objective of making regulation more efficient while preserving its purpose. "The objective is to make regulation more efficient while preserving its purpose," Pandey explained, reflecting the regulator's focus on streamlining compliance processes without compromising regulatory effectiveness.
