Mumbai: The Securities and Exchange Board of India (SEBI) is preparing a range of measures to make Indian capital markets more accessible, efficient and resilient, with a particular focus on foreign investors, corporate bond markets and new investment products, Chairman Tuhin Kanta Pandey said on Tuesday.
Addressing the JP Morgan India Conference here, Pandey said the regulator is working to simplify digital onboarding for individuals residing outside India, expand participation by foreign portfolio investors (FPIs) in non-agricultural commodity derivatives and introduce depository receipts against units of real estate investment trusts (Reits) and publicly listed infrastructure investment trusts (Invits).
He said SEBI’s approach towards foreign investors has been centred on reducing friction across the entire investment journey. According to Pandey, onboarding procedures are becoming faster, more digital and proportionate to risk. He highlighted the SWAGAT-FI framework for trusted, low-risk investors, noting that around 205 FPIs have already used the mechanism since it became operational on June 1, 2026.
The SEBI chief said easier market access, deeper participation and stronger resilience will remain key priorities for the regulator. Designated depository participants have already adopted digital workflows and API-based integration to reduce onboarding timelines for FPIs, and SEBI intends to encourage wider adoption of such technology-driven solutions across the ecosystem.
Pandey said the regulator is also consulting on net settlement of funds for mutual fund schemes in the cash market. After establishing the Closing Auction Session (CAS), SEBI is now examining concerns related to settlement prices for derivatives contracts on expiry days, for which a consultation paper has already been issued.
He added that SEBI will continue efforts to broaden participation in the cash market while strengthening securities lending and borrowing mechanisms and promoting hedging and arbitrage activities to improve price discovery.
On the corporate bond market, Pandey said work is underway on a market-making framework aimed at improving liquidity, infrastructure and access to the repo market.
SEBI is also consulting on the introduction of Fixed Income Channel Partners to expand distribution through regulated online bond platforms and considering a Credit Risk-o-Meter framework to help investors better understand credit risks associated with debt instruments.
(IANS)
