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29/07/2021 12:54pm

Capital markets to play bigger role in funding economic growth, says SEBI Chairman

image Capital markets to play bigger role in funding economic growth, says SEBI Chairman

New Delhi, Jul 29 (KNN) Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi said that a large part of the non-banking financial intermediation is happening through the capital markets.

“Going forward, the capital markets are going to play a bigger role in funding economic growth,” he said while addressing the 18th Annual Capital Markets Conference ‘CAPAM 2021 – Beyond India@75: Accelerating Growth through Capital Market’, organized by FICCI, on Wednesday.

Tyagi said that going forward the focus area for SEBI will be on strengthening the robustness of capital markets.

“The household financial savings deployed in the securities market is rising and sustaining it will give a tremendous boost to both the capital markets and the economy,” he asserted.

Speaking on the IPOs, fundraising and disclosures, Tyagi said that the success of IPOs from new age tech companies will attract more funds and help create a new eco-system of entrepreneurs and investors.

“SEBI is constantly reviewing the regime. The framework for minimum public shareholding was revised to make it easier for large companies to make an IPO. Focus on review of equity fundraising norms will continue in future and SEBI’s Primary Market Committee is deliberating if SPAC framework should be introduced in India. From raising through traditional equity and debt instruments, corporates have diversified into a large number of new instruments. As the market dynamics change, even more innovative instruments are likely to appear,” added Tyagi.

Highlighting the future plans, Tyagi said that SEBI has been active in the efforts to strengthen the market and several reforms are in the pipeline. For listing of Start-ups, a separate platform ‘Innovators Growth Platform’ was created.

“For fund raising requirements of the social sector, we are in the process of setting up an entire ecosystem called ‘Social Stock Exchange’,” he added.

On the issue of corporate governance, SEBI Chairman said that while independent directors have an important role, other directors should also play a more active role in company management. There is a need to continuously improve the corporate governance standards and transparency should come from within the company itself.

“With the increased awareness and maturing of capital markets, well governed companies carry the trust of investors and reap benefits in the long run. I urge FICCI to step up its efforts on corporate governance improvement of its members. If industry self-governs well, the need for the regulator to step in every time will not arise,” he emphasized.

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