Sebi Chairman Tuhin Kanta Pandey on Friday said the regulator is examining the introduction of longer-term futures and options contracts, expansion of commodity derivatives and development of bond index derivatives in collaboration with the Reserve Bank of India.
Speaking at the ETNOW Market Summit, Pandey said Indian capital markets have remained resilient despite challenges ranging from tariff uncertainties and West Asia conflicts to artificial intelligence disruptions and foreign portfolio investor outflows.
“IPO activity has remained relatively subdued during these two months, but the IPO pipeline of around Rs 1.5 lakh crore remains robust for the coming months,” Pandey said.
Pandey noted that capital formation has continued despite heightened volatility. During April and May of FY27, Indian markets helped raise more than Rs 1.5 lakh crore, including around Rs 70,000 crore through equity issuances and Rs 86,000 crore through corporate bonds.
Pandey said India’s capital markets have developed a stronger domestic investor base that provides support even when global sentiment weakens. Highlighting the growing role of retail investors, he said systematic investment plan (SIP) assets now account for nearly 21% of the mutual fund industry‘s assets as of May 2026.
“The SIP stoppage ratio also declined to 95% after remaining above 100% for two consecutive months. In simple terms, new SIP registrations again exceeded SIPs that were stopped or completed,” he said.
According to Pandey, this reflects the willingness of investors to continue following a long-term investment approach despite market swings.
On regulation, Sebi chairman reiterated the regulator’s approach of “optimum regulation”, aimed at balancing investor protection with market development and innovation.
He highlighted recent reforms including the T+1 settlement cycle, T+3 IPO listing timeline, faster rights issues, direct payouts and digital processes that have improved market efficiency.
Pandey also outlined Sebi’s three-pronged agenda for the future — reducing market friction, deepening markets and ensuring responsible growth.
As part of efforts to lower friction, Sebi is reviewing the Listing Obligations and Disclosure Requirements (LODR) framework, the delisting regime and regulations governing municipal debt and portfolio management services.
The regulator is also looking at simplifying KYC requirements for foreign investors and non-resident Indians.
On market deepening, Pandey said Sebi is reviewing securities lending and borrowing as well as short-selling frameworks to improve liquidity and strengthen links between cash and derivatives markets.
Pandey said Sebi is reviewing the Innovators Growth Platform to facilitate fundraising by companies operating in strategic sectors such as artificial intelligence, semiconductors, clean energy, biotechnology, advanced materials and defence technology.
He added that REITs and InvITs will continue to play an important role in infrastructure financing and capital recycling, with SEBI considering measures to align their listing timelines more closely with equity markets.
On the use of artificial intelligence, Pandey said Sebi plans to issue detailed guidelines on responsible AI adoption in capital markets, covering areas such as surveillance, risk assessment, fraud detection and investor services.
At the same time, he cautioned that AI brings risks related to transparency, data protection, cybersecurity and accountability. “We will keep our markets prepared for shocks, open to innovation, and anchored in trust,” Pandey said.
He added that growth in capital markets must continue to be supported by strong institutions, fair conduct and resilient market infrastructure.
