SEBI Outlines Digital and Disclosure Reforms, Urges CAs to Partner in Building Transparent Capital Markets
SDG 8: Decent Work and Economic Growth | SDG 16: Peace, Justice, and Strong Institutions
Securities and Exchange Board of India (SEBI)
In his address at the 22nd National CA Conference 2025, the Chairman of SEBI highlighted the significant transformation of India’s capital markets and outlined key regulatory reforms and the essential partnership required with the Chartered Accountant (CA) profession.
Market Growth and Transformation:
Valuation: India’s market capitalization has increased from about ₹100 trillion in FY15 to over ₹470 trillion today, growing at a CAGR of 16%.
Participation: The number of active individual investors has tripled from around 1.2 crore in September 2020 to 3.5 crore in September 2025. Mutual Fund assets have swelled to approximately ₹81 trillion.
Key Regulatory Reforms in 2025
Transparency and Disclosure: SEBI mandated timely confirmations or denials of market rumours for the top 250 listed entities in cases of material price movement to prevent misinformation. Disclosures in price band advertisements for public issues have been improved to clearly state Main Board or SME Exchange listing and provide details on the issue size (Fresh issue and OFS portions).
Ease of Business & Simplification: SEBI streamlined processes for IPO listings and created a single filing system for listed companies to avoid duplication across platforms. The regulator also reviewed and simplified Related Party Transaction disclosures and introduced flexibility in Business Responsibility and Sustainability Reporting (BRSR) Core.
Market Development: SEBI introduced the Specialised Investment Fund (SIF) to bridge the gap between Mutual Funds and Portfolio Management Schemes (PMS). It also launched the ‘SWAGAT - FIIs’ Framework for Foreign Institutional Investors (FIIs), offering easier access, unified registration, and minimized documentation.
Investor Protection: New tools were introduced, including “Validated UPI handles” and the “SEBI Check” tool, to help investors verify intermediary bank accounts before making payments. The PaRRVA2 platform was launched for intermediaries to present verified performance data, improving trust and decision-making.
What is the ‘SWAGAT - FIIs’ Framework? The ‘SWAGAT - FIIs’ Framework is a policy introduced by SEBI for Foreign Institutional Investors (FIIs) aimed at simplifying digital onboarding, providing easier investment access, unified registration, and minimizing documentation and compliance requirements for eligible investors.
Policy Relevance
SEBI’s regulatory response to market complexity is a blended approach focused on disclosure mandates (rumour verification), digitalization (SWAGAT FIIs, UPI checks), and simplification (single filing system). By simultaneously strengthening governance integrity and easing market access, SEBI aims to sustain the current momentum of market growth. The call for collaboration with CAs to standardise complex valuations and enhance forensic techniques explicitly recognizes that external professional integrity is indispensable for ensuring market fairness and resilience.
Relevant Question for Policy Stakeholders: Given the speed of technological evolution in capital markets, what policy incentives can SEBI create to accelerate the CA profession’s transition to AI-augmented audit tools and digital evidence standards needed for forensic and assurance quality?
Follow the full news here: Address by Shri Tuhin Kanta Pandey, Chairman, SEBI