SEBI chairperson Tuhin Kanta Pandey addressing a press conference in Chennai on Monday (December 1). Photo: X | @SEBI_updates
Listing norms to be overhauled in 4-6 months: SEBI chief Pandey
SEBI chairman Tuhin Kanta Pandey announced a major review of LODR regulations for new-age and SME companies, and confirmed continued scrutiny of derivatives trading and market valuations
SEBI chairperson Tuhin Kanta Pandey said the regulator has begun work on a comprehensive overhaul of India’s listing regulations, outlining a four-to-six-month timeline for a draft and signalling continued scrutiny of derivatives trading and market valuations.
‘Major exercise that needs broad consultation’
Addressing reporters in Chennai, Pandey said the review of listing rules is a “major exercise” that requires broad consultation. Inputs received so far range from clarifications on ambiguities to forward-looking frameworks for new-age companies. SME-market concerns are also expected to be taken up as part of the process.
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Pandey said India’s equity valuations remain close to their long-term averages despite concerns over global market froth. After corrections following September 2024 and muted returns in the last quarter, he said flows have shifted across markets but Indian equities “are going up” and “will find their level.”
Measures to curb speculation in derivatives trading
The chairman said SEBI has introduced several measures since late 2024 to curb excessive speculation in derivatives trading, with another set to take effect on December 6. The regulator will release a consultation paper after analysing post-implementation data. He reiterated that India’s approach aims to strengthen risk management without constraining legitimate market activity.
He also encouraged the development of longer-tenure derivatives, including quarterly, one-year, and two-year products, saying exchanges must innovate while SEBI provides the enabling framework.
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On questions around start-up IPO valuations, Pandey said India operates a disclosure-based regime and valuations are determined through market-driven book-building. SEBI is pushing for enhanced simplicity for retail investors, including short, summarised offer documents.
Investor-awareness efforts
Pandey highlighted new investor-awareness efforts such as the “Saathi” 30-second cyber-fraud check, multilingual content, and upcoming theme-based financial-literacy material. Findings from SEBI’s 2025 investor survey will shape future messaging.
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He said the rise in Offer for Sale (OFS) activity is not a concern, calling capital “fungible” and noting that companies choose between fresh issuance and OFS based on needs. On the Investor Protection Fund, he said SEBI’s own fund is drawn upon less because similar pools exist with exchanges; around Rs 100 crore remains available for campaigns.
When asked about Adani-related matters, Pandey declined to comment citing SEBI’s convention against discussing individual cases.
