SEBI Chairperson Highlights Importance of Data and Research for India’s Securities Market

The Securities and Exchange Board of India (SEBI) is focusing on improving how data is used to support the country’s securities market. SEBI Chairperson Tuhin Kanta Pandey recently shared key ideas at the Sixth Annual International Research Conference on Securities Market. His comments highlight the importance of responsible data sharing, advanced research, and new policies to make the market stronger. Key highlights include the progress and challenges faced by India’s securities market, along with plans to use data and technology effectively. Some of the main points include the following: - Responsible governance and shared data can help policy making, supervision, and identifying risks. - Increasing data access aims to support better research across the whole securities market ecosystem. - Over the last decade, the Indian securities market has changed a lot. Market size has grown from about 100 trillion rupees to over 470 trillion rupees. - The number of individual investors has increased significantly, from 38 million in 2019 to 140 million. - Technologies like artificial intelligence and advanced analytics can help monitor markets and find fraud. But they also pose risks, such as creating feedback loops and making models less transparent. - Because of these concerns, Pandey called for more detailed research on market microstructure and technology risks. SEBI has taken steps to promote data sharing and transparency. This includes requiring stock exchanges and clearing houses to have data-sharing policies. Recently, the regulator carried out a large survey of 90,000 households to understand investor behavior. The data from this survey is now available to researchers, encouraging further study. Pandey invited researchers and market practitioners to analyze this data. They can discover new insights that may not be obvious at first glance. This will help improve understanding of investor behavior and market’s microstructure. To support ongoing research, SEBI established the NISM Center for Regulatory Studies. This center aims to become a global hub for advanced research and provide useful insights to regulators. SEBI is also expanding its focus on policy research by introducing regulatory impact analysis. A new department within the Department of Economic Policy and Analysis will now evaluate how policies work in practice, using solid evidence. Looking ahead, Pandey emphasized the need for research tailored to India’s specific conditions. This includes studying behavioral finance, which looks at how investors behave, and combining knowledge from different fields to better understand markets. He also pointed out the importance of linking academic research with real-world market practices. Strengthening this connection can help develop better policies and improve market stability. In summary, SEBI's efforts center on using data and research to build a more transparent, resilient, and well-regulated securities market in India. These initiatives aim to support investors, promote innovation, and ensure the market’s long-term growth and safety.