SEBI will focus on strengthening the robustness of capital markets, assures Tyagi
The capital markets are going to play a bigger role in funding the economic growth and a large part of the non-banking financial intermediation is happening through the capital markets, says Ajay Tyagi, Chairman, Securities and Exchange Board of India (SEBI).
Going forward, the focus area for SEBI will be on strengthening the robustness of capital markets, he told the 18th Annual Capital Markets Conference ‘CAPAM 2021 – Beyond India@75: Accelerating Growth Through Capital Market’.
“The household financial savings deployed in the securities market is rising and sustaining it will give tremendous boost to both the capital markets and the economy,” said Tyagi at the conference organised virtully by FICCI on 28 July 2021.
Tyagi said that the success of IPOs from new age tech companies will attract more funds and help create a new eco-system of entrepreneurs and investors.
“SEBI is constantly reviewing the regime. The framework for minimum public shareholding was revised to make it easier for large companies to make an IPO. Focus on review of equity fundraising norms will continue in future and SEBI’s Primary Market Committee is deliberating if SPAC framework should be introduced in India,” he informed.
“From raising through traditional equity and debt instruments, corporates have diversified into a large number of new instruments. As the market dynamics change, even more innovative instruments are likely to appear,” said Tyagi.
Highlighting the future plans, Tyagi said that SEBI has been active in the efforts to strengthen the market and several reforms are in the pipeline. For listing of start-ups, a separate platform ‘Innovators Growth Platform’ was created, he shared.
“For fund raising requirements of the social sector, we are in the process of setting up of an entire eco-system called ‘Social Stock Exchange’,” he added.
On the issue of corporate governance, SEBI Chairman said that while independent directors have an important role, other directors should also play a more active role in company management. There is a need to continuously improve the corporate governance standards and transparency should come from within the company itself.
“With the increased awareness and maturing of capital markets, well governed companies carry the trust of investors and reap benefits in the long run. I urge FICCI to step up its efforts on corporate governance improvement of its members. If industry self-governs well, the need for the regulator to step in every time will not arise,” he emphasized.
Digital adoption and addition of new customers will continue on an accelerated trajectory in coming years, assured Vikram Limaye, MD & CEO, National Stock Exchange of India Limited.
SEBI is working with other stakeholders to reduce the listing time further and it is expected to be reduced to 2-3 days, according to Limaye.
FICCI President Uday Shankar pointed out that that the capital market had functioned smoothly despite the pandemic and the listing of new age companies has brought depth to the market.
“We need simplification of the listing process,” he added, calling for a creation of an efficient process for delisting.
The Indian market has got diversified and has got depth, according to Rashesh Shah, Past President, FICCI and Chairman, Edelweiss Group. “Glorious times for the Indian markets are ahead. We are transforming from a country of savers to country of investors,” he said.
A structured private security market will be helpful, according to Sunil Sanghai, Chairman, FICCI National Committee on Capital Markets and Founder & CEO, NovaDhruva Capital Pvt Ltd.
He also urged for creating a capital green market corridor which will be fruitful.
“We are working closely with SEBI to chart out the growth path for capital markets and ensure that it remains robust,” assured Vijay Chandok, Co-Chair, FICCI Capital Markets Committee and MD & CEO, ICICI Securities Ltd. #investment #economy #funds #IPO /fiinews.com
