SEBI Marks 38 Years: FM Sitharaman Directs Focus on Principles-Based Regulation and Deepening India's Bond Market

SEBI Marks 38 Years: FM Sitharaman Directs Focus on Principles-Based Regulation and Deepening India's Bond Market​

Mumbai, April 25, 2026. The Securities and Exchange Board of India (SEBI) celebrated its 38th Foundation Day today, marking three decades of transformative financial governance. The high-profile event was graced by the Hon'ble Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, who addressed the gathering and laid out the regulatory roadmap for India's financial future.

Chairman of SEBI, Shri Tuhin Kanta Pandey, noted the market's resilience during an unpredictable global environment. He thanked the government for the foundational reforms and recognized the collaborative efforts of exchanges, depositories, and market participants. These collective efforts have sustained continued capital formation despite ongoing global uncertainties.

Pillars of SEBI’s 38-Year Regulatory Journey​

During her welcome address, the Finance Minister lauded SEBI's historical contributions to the Indian capital markets. She specifically highlighted the transition to a T+1 settlement cycle and the introduction of ASBA, which successfully eliminated refund cycles for IPOs. Furthermore, the FM noted India's pioneering role in allowing UPI for IPO applications, bringing real-time retail participation to every smartphone.

The Minister emphasized the institutional strength evidenced by SEBI's high success rates, including over 90% in the Supreme Court and 92% at Civil Courts/NCLT. This established legal architecture has been crucial in driving India's retail participation revolution.

Prioritizing Investor Protection and Market Integrity​

A key theme of the address was the evolution of investor protection. The Hon'ble FM cautioned that market access must be accompanied by informed participation, warning that vulnerability arises from participation without understanding. She stressed that investor protection must therefore evolve from a purely defensive function into a proactive developmental function.

She asserted that investor trust and market integrity are not just market variables; they are vital public goods. She underscored SEBI’s role as the market's primary enforcer, stressing that misconduct must be pursued consistently and without hesitation. Her appreciation for SEBI’s action against unregistered 'fin-fluencers' signaled the regulator's unwavering stance on unlicensed financial advice.

Driving Financial Deepening Through Policy Reforms​

Regarding regulatory frameworks, the Minister strongly urged a shift towards a principles-based and soft-touch regulation approach. She recommended encouraging public consultation, treating market participants as partners in regulation rather than subjects.

On the issue of KYC, she noted the necessity for a seamless, secure, and portable KYC experience across the entire financial sector. The Minister proposed that SEBI must take the lead in driving common KYC norms and the digitalization of these processes.

For infrastructural growth, attention must also shift to deepening the bond market. The Hon'ble FM urged that access to bonds should not be limited to the highest-rated issuers. Crucially, she stressed the need for a serious push for Municipal Bonds, recommending SEBI collaborate with State Governments and Urban Local Bodies to improve the urban bond framework.

Cyber Vigilance and Consumer Awareness Initiatives​

In response to modern risks, the Minister highlighted that AI-led tools are making cyberattacks faster and more autonomous. She directed that all Regulated Entities maintain exceptional vigilance in this domain.

She praised SEBI's existing proactive measures, including the Cybersecurity and Cyber Resilience Framework and the Data Analytics and Digital Forensics Laboratory's use of AI/ML models. Furthermore, she commended the rollout of 'SEBI Check,' which allows investors to verify intermediary payment details before transfers.

To bolster public awareness, the Minister inaugurated 'Jagrook,' a comprehensive, nationwide media campaign. This project, executed under the umbrella of SEBI and Securities Market Partners (SMPs), aims to ensure the securities market is accessible and inclusive to a wider population in a responsible manner.

SEBI’s Role in India’s Growth Trajectory​

Concluding her remarks, the Hon'ble FM emphasized that India's journey towards 'Viksit Bharat' requires extraordinary capital investment in infrastructure, manufacturing, and energy transition. She clarified that these needs cannot be met by public balance sheets or banks alone.

She stressed that the market must focus on better markets, not merely bigger ones. She concluded by stating that size without integrity is fragility, and volume without investor protection is exploitation. The Minister extended appreciation to all past and present personnel who have built an institution that has earned national trust and international respect.