Looking to allow global fund management from India: Sebi chief Tuhin Kanta Pandey

MUMBAI: Sebi chairman Tuhin Kanta Pandey on Wednesday said that among several market reforms that the regulator was working on, it was in the process of putting in place “a framework to support global fund-management activity from India.” He also said that the Securities Lending & Borrowing Mechanism (SLBM) and the short selling frameworks were being reviewed to deepen the cash markets. In debt markets, proposals include greater ISIN (International Securities Identification Number) flexibility, support for ESG debt and some tech-driven changes in the corporate bond market, he said.The Sebi chief also said that the regulator was working on a framework for portfolio managers so that client funds could be invested in foreign securities. Pandey pointed out that technology was now an integral part of the market infrastructure.“Digital KYC, paperless onboarding, mobile platforms and electronic payments have reduced friction across the investment journey.” Speaking about artificial intelligence (AI), Pandey said that it can strengthen surveillance, risk assessment, fraud detection and investor servicing.

“But (AI) also brings risks of opacity, bias, cybersecurity, data protection and accountability. The question is not whether markets will use AI. The question is how we use it responsibly, while preserving trust.”The Sebi chief also said that a growing economy like India would create new investment frontiers. On that line, “India will need capital for infrastructure, technology, advanced manufacturing, energy transition, data centres and new-age enterprises, especially in AI, both hard infrastructure and applications. Efficient public markets, deeper bond markets, REITs and InvITs, AIFs and new fund-management products will all have a role to play.” K V R Murty, whole time member, Sebi said that the introduction of CAS in the equity cash segment was a major step for the Indian market. “It ensures that the closing price reflects collective market consensus.”