Stock Market New Changes: Securities and Exchange Board of India (SEBI), Chairman Tuhin Kant Pandey has said that India’s capital markets are no longer just a reflection of economic growth, but have become its main pillar.
He said that India’s economy is showing ‘extraordinary growth and strength’ and equity markets are now at the heart of the country’s dream of a developed India.
Speaking at the CNBC-TV18 Global Leadership Summit 2025, SEBI chief Tuhin Kant Pandey presented a reform-driven roadmap for the next phase of India’s economic expansion. At the same time, the SEBI chairman said that a working group will soon be formed to conduct a comprehensive review of short selling and securities lending and borrowing (SLB) regulations. Speaking at the CNBC-TV18 Global Leadership Summit, the SEBI chief said, “We will soon form a working group to conduct a comprehensive review of short selling and the SLB framework.”
What is the SLB system?
SLB is a system that allows investors or institutions to lend shares in demat accounts to others for a fixed fee. The transaction is carried out through a stock exchange and is guaranteed by a clearing corporation, which ensures a safe and smooth process. Experts believe that borrowers generally use these securities for short selling or to avoid defaults on settlements. The SLB framework not only allows borrowers to earn additional income on their dormant shares, but also improves liquidity (cash flow) and overall efficiency in the market.
Derivatives and market structure to undergo major changes
Tuhin Kant Pandey said that SEBI will soon introduce a new options framework, which will be in line with global standards but as per India’s needs. He explained that the weekly F&O settlement has brought more clarity to the market and SEBI will be keeping a close watch. In addition, the mechanism for short-selling and securities lending-borrowing will be reviewed to boost market growth.
Mutual fund and bond market under scrutiny
Meanwhile, the SEBI chairman further said that mutual funds are an under-utilized sector in India. Mutual fund assets in India are less than 25% of GDP, while globally this figure is much higher. He pointed out that 15% of people in urban areas invest in the securities market, while only 6% of MFs are invested in rural areas. In such a situation, SEBI buyback rules and listing disclosure framework will also be reviewed to increase transparency and strengthen investor confidence.
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