SEBI Streamlines Regulations to Enhance Market Efficiency and Access

The Securities and Exchange Board of India (SEBI) is implementing measures aimed at reducing regulatory burdens and compliance costs to enhance the competitiveness of the Indian securities market. During the Sixth Annual International Research Conference on Securities Market held on February 12, 2026, SEBI Chairman Tuhin Kanta Pandey asserted that improving cost efficiency is vital for facilitating better access to finance across various productive sectors, while still upholding essential regulatory objectives.

Pandey underscored the direct correlation between regulatory overheads and the broader economy. He remarked, “Efficiency, cost efficiency of all our measures is important because if you have to build competitiveness, then obviously if there is a compliance burden on regulation, it’s too high in terms of cost and time, then obviously to that extent the competitiveness also goes down.”

New Framework for Regulatory Impact Assessment

SEBI is establishing a framework for regulatory impact assessment, a move that was previously indicated by the Finance Minister during budget announcements. A committee led by the Chief Economic Advisor will guide this initiative. In support of this effort, SEBI is launching a Centre for Regulatory Studies, which will serve as a high-level research facility designed to foster collaboration between policy schools and research institutes.

This new centre aims to study the effects of regulations on the market, striving to find a balance between regulatory objectives and the costs associated with compliance. While quantifying the exact impact on GDP growth from these initiatives remains challenging, Pandey emphasized that reducing the cost of capital is a primary goal. He believes these efforts will improve finance accessibility, strengthen the overall economy, and maintain market stability.

Coordination and Technical Improvements

Pandey addressed the interconnections within the financial system, highlighting that discussions surrounding these issues occur at the level of the Financial Stability and Development Council (FSDC). This body aims to ensure coordination among regulators by exploring various methods to collect data and conduct research that can lead to improved access to finance and reduced costs.

In response to recent technical glitches at the National Securities Depository Limited (NSDL), Pandey confirmed that the system is now operating normally. A technical issue within the inter-depository transfer system had caused settlement backlogs, which have since been resolved. SEBI is now awaiting a root cause analysis from its Technical Advisory Committee.

Looking into the future, SEBI envisions creating a system where investors can access a consolidated statement of all their financial assets across different regulators, including pensions and insurance, contingent upon user consent. This initiative reflects SEBI’s commitment to enhancing market efficiency, accessibility, and investor-friendliness.

As these changes take shape, they signal a significant shift towards a regulatory environment that prioritizes both cost efficiency and investor convenience, potentially transforming the landscape of the Indian securities market.