Addressing the 19th Annual Capital Markets Conference on Tuesday, Securities and Exchange Board of India (Sebi) chairperson, Madhabi Puri Buch, emphasized the need for transparency in the capital market and said Sebi's main task is to "facilitate capital formation" for nation-building.
The 'CAPAM 2022' event was organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) in Mumbai.
Buch underscored the importance of technology in nation-building and said, "We will rely on and be led by data. Every single policy that SEBI brings out today is backed by data."
While Sebi's role is to "facilitate capital formation," the corporates and businesses' task is nation-building, she said, stressing that technology could help achieve the country's goals.
Sebi's first woman chairperson also stressed more transparency in the capital market. "Unless trust in the system is protected, we will fail in our core objective. One of the most important aspects of trust building is transparency. This is Sebi's important mantra," she added.
Buch said Sebi's disclosure-based regime is its primary regulatory approach.
She also supported Sebi's consultative approach to formulating regulations. "There is nothing behind closed doors. We will continue to be committed to the process of consultation, and the industry will have to keep up with the pace of Sebi regulations," she stated.
Buch said the regulator would keep formulating new policies as the business and markets grow.
The top regulator has also highlighted the critical role of technology in achieving the nation's goals. "Technology is the magic bullet, and with technology, it is possible to reduce cost, serve the customer better, (and) have better control and compliances."
Commenting on companies' initial public offerings (IPOs), Buch said Sebi wouldn't interfere in the pricing and valuations of companies. "Sebi cannot have a view on pricing, and companies are free to price their issue, which they feel is appropriate for them," Buch said.
She also called for strong industry partnerships to strengthen the capital market. "We need to manifest the spirit of partnership between Sebi and industry," the chairperson said.
