Why in news ?
SEBI ( the Securities and Exchange Board Of India) has selected Tuhin Kantha Pandey as it’s new chairman. Mr. Tuhin Pandey is an experienced Indian Administrative Services officer of 1987 batch Odisha cadre. He has been appointed for a term of 3 years starting from March 1 , 2025 . He has succeeded Madhabi Puri Buch, who was the first woman to lead SEBI .
The Government of India has shown a great faith and trust on bureaucracy for this post as it is learned that a considerable number of people from private sphere were also considered for the position. The appointment is made by Government of India on the recommendation of Financial Sector regulatory appointment search committee.
Professional Background
THE PROFESSIONAL background of Mr. Pandey accords him great command over this position. He has served as India’s Finance Secretary since September 2024 , thus playing a key role in shaping and carving India’s financial policies. The charge of Finance Secretary was given to him on virtue if being the seniormost secretary amongst all in the Finance ministry.
Mr. Pandey holds Masters degree and an MBA degree as his educational and academic background. He is known to have played a key role in finalising sale of Air India, as DIPAM secretary.
About the position
The position of SEBI chief has been in continuous news since the last year Hindenburg Research allegations. The allegation revolved around the then SEBI Chief Madhabi Buch and her husband who had stakes in offshore funds and were siphoning money. The continuous chaos was created around the esteemed position by opposition leaders about the chairman committed to the Government
What is SEBI?
The Securities and Exchange Board of India (SEBI) is the key regulatory authority for the Indian securities market, established to protect investor interests, promote market growth, and ensure the fairness and transparency of financial transactions. Initially formed in 1988, SEBI was given statutory powers through the SEBI Act, 1992.
Over the years, SEBI has played a pivotal role in transforming India’s securities markets by introducing major reforms like paperless trading, electronic settlements, and the T+1 settlement cycle, which has significantly improved the market’s efficiency and security.
SEBI OBJECTIVES
SEBI’s primary objectives are to protect the interests of investors, promote the development of the securities market, and regulate its functioning to ensure transparency and fairness. It aims to create an environment where investors feel secure by enforcing rules that prevent fraudulent and unfair trade practices, such as insider trading.
By maintaining an effective regulatory framework, SEBI seeks to balance investor protection with market growth, ensuring that both corporate participants and investors benefit from a well-regulated securities market.
SEBI powers
SEBI holds extensive powers to regulate and control the securities market in India. These powers are equivalent to those of a civil court under the Code of Civil Procedure, 1908, allowing SEBI to investigate and take necessary actions to protect investor interests and ensure market integrity. SEBI’s powers in this regard include the following:
- Discovery and production of books of accounts and other documents at a specified place and time.
- Summoning and enforcing attendance of individuals and examining them under oath.
- Inspection of any books, registers, or other documents of any person or company involved in the securities market.
Additionally, SEBI can take the following measures to safeguard the market, either during an investigation or after its completion:
- Suspend trading of any security on a recognized stock exchange.
- Restrain individuals or entities from accessing the securities market and prohibit them from buying, selling, or dealing in securities.
- Suspend office-bearers of any stock exchange or self-regulatory organization from holding their positions.
- Impound and retain proceeds or securities related to transactions under investigation.
SEBI plays a vital role in regulating and developing the securities market in India. Its wide-ranging functions ensure market integrity, protect investors, and promote transparency. Some of SEBI’s key functions include:
- Regulating business on stock exchanges and other securities markets.
- Registering and regulating the functioning of intermediaries like stock brokers, sub-brokers, share transfer agents, merchant bankers, portfolio managers, investment advisers, and others associated with the securities market.
- Registering and regulating depositories, custodians of securities, foreign institutional investors, credit rating agencies, and other market participants specified by SEBI.
- Registering and overseeing the functioning of venture capital funds, collective investment schemes, and mutual funds.
- Preventing and prohibiting fraudulent and unfair trade practices related to the securities market.
- Promoting investor education and providing training to intermediaries in the securities market.
- Preventing insider trading and ensuring fairness in securities dealings.
- Gathering information, conducting inspections, and audits of stock exchanges, mutual funds, market intermediaries, and self-regulatory organizations to ensure compliance.
- Sharing and receiving information from domestic and international authorities regarding violations of securities laws, subject to agreements approved by the Central Government.
- Performing functions under the Securities Contracts (Regulation) Act, 1956, as delegated by the Central Government.
- Levying fees and charges for carrying out its regulatory duties.
- Conducting research related to the development and regulation of the securities market.
- Calling for and providing information to relevant agencies for efficient market oversight.