SEBI Aims to Reduce Regulatory Costs and Assess Market Impact

The Securities and Exchange Board of India (SEBI) is reportedly studying a set of steps that could reduce regulatory costs across the market. Chairman Tuhin Kanta Pandey said the effort is focused on lowering compliance expenses and improving access to finance for different sectors. 

He said the cost of capital remains a key issue. If regulatory requirements take up too much time or money, it can affect competitiveness and slow down fund-raising. 

Panel Formed to Review Rules 

In January, SEBI set up a 5-member External Experts Advisory Committee (EEAC) to carry out a thematic review of regulations. The panel is chaired by Chief Economic Adviser V. Anantha Nageswaran. 

As per news reports, the committee includes regulatory experts and former SEBI officials. It has been asked to examine rules on efficiency, compliance burden, impact, and cost-benefit factors. 

Coordination at FSDC Level 

The issue of simplification and cost-impact analysis has also been discussed at the Financial Stability and Development Council (FSDC). The council serves as a platform for coordination among financial regulators. 

Through this forum, regulators are looking at ways to collect data, support research, and identify steps that could lower the cost of finance across the system. 

Talks on Consolidated Asset Statement 

SEBI is also in discussions with other regulators on a consolidated statement of financial assets. The proposal could bring together information across pensions, the National Pension System (NPS), insurance, and banking products. 

If introduced, investors may be able to see multiple holdings in a single statement, subject to coordination among the authorities involved. 

Need for India-Focused Research 

At the research conference, Pandey highlighted the need for studies focused on Indian market behaviour, governance and technology risks. He said technological changes can influence incentives and outcomes in financial markets. 

He also pointed to concerns around artificial intelligence, including feedback loops, limited transparency, and the risk of errors spreading at scale. 

Read More: SEBI Introduces SWAGAT-FI with Single Licence and Longer Validity for Select FPIs! 

Conclusion 

The steps under review show SEBI’s examination of how regulations affect costs across the market. The expert panel’s findings are expected to guide future decisions. 

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