Madhabi Puri says speed is critical in making best use of markets

Madhabi Puri Buch, the chief of the Securities and Exchange Board of India (Sebi), has underscored the critical importance of speed in capitalising on India’s markets. 

“An overnight delivery is considered delayed today in a physical world, so imagine the expectations from a digital world,” she remarked, emphasising the SEBI's commitment to keeping pace with market demands.

Ms Buch delivered the keynote address at a summit organised by the Confederation of Indian Industry on Monday, focusing on how regulators can contribute to a Viksit Bharat (developed India). She highlighted that Sebi responded to the market’s need for speed with policies defining investor protections. 

`We have policies in place'

"We have restructured ourselves to focus on specific activities with a clear set of policies,” Ms Buch said.

Her comments come against the backdrop of SEBI's recent launch of the world’s fastest trade settlement system. Earlier this year, India transitioned all stock market trades from a T+2 to a T+1 settlement cycle, ensuring that trades are settled just a day after execution. The SEBI has directed clearing corporations and depositories to make funds available to foreign portfolio investors (FPIs) on the same day as the settlement, starting in October.

Addressing the broader theme of preparing markets for Viksit Bharat, the SEBI chief stressed the importance of capital formation and wealth creation for the Indian economy. She underscored the need for inclusivity, noting that even small investors should have the opportunity to participate.

SIP of Rs 250 a month

She said that the launch of a ₹250 per month systematic investment plan (SIP) is a step in this direction. 

Among the regulator’s recent initiatives, Ms Buch mentioned efforts to ease procedural disclosures, the proposal of a new asset class, aND the promotion of alternative investment vehicles like Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (Reits).

                                                       (By arrangement with livemint.com)

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