Governance not a checklist; disclosure failures pose risk, warns SEBI chief Pandey

SEBI Chairman Tuhin Kanta Pandey on Saturday said corporate governance should not be reduced to a tick-box exercise, urging chartered accountants to ensure its core principles are upheld. He was speaking at the 77th Foundation Conclave of the Bombay Chartered Accountants’ Society (BCAS).“SEBI has established a robust disclosure framework for listed entities. Regular disclosures help investors understand financials and ensure transparency,” he said. However, false or delayed disclosures can pose major risks.
“We have in the past debarred entities from accessing capital markets and restricted individuals from holding key positions,” he noted.
Pandey highlighted recent regulatory efforts, including the introduction of a single-filing system for listed firms to ease compliance. “We do not want to burden listed entities with too much compliance or micro-management,” he said, adding that “cooperative co-creation” between regulators and market participants is the way forward.Also Read: Jane Street Group restrained from accessing securities market by SEBI, ₹4,843 crore to be impounded

He flagged cyber fraud as an area of concern and said SEBI is working on a ‘Valid UPI’ system, which will be implemented from October 1. A large investor awareness campaign is also on the cards.

India’s capital market infrastructure is among the best globally, Pandey said, but added that much still needs improvement — especially in retail investor participation.

“People at the retail level don’t understand bonds,” he observed, adding that while corporates are now raising more money through markets than banks, retail investors are largely missing from the bond market. “We cannot have a one-size-fits-all approach for investors with different risk appetites.”