SEBI Chairman warns of tough crackdown on market manipulation
What's the story
Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has issued a stern warning against market manipulation. Speaking at an event in Mumbai, he said, "We will continue to watch. On market manipulation, we will come down very hard going forward." This comes amid rising concerns over fraudulent practices in the Indian capital market.
Zero tolerance
SEBI's 0-tolerance policy toward market manipulation
Pandey emphasized SEBI's zero-tolerance policy toward market manipulation. He said, "There may be cases which may be happening even now, but people will be caught and then they will have to suffer." His statement comes as SEBI has been cracking down on fraudulent practices in SME IPOs and pump-and-dump schemes. The regulator is also investigating derivative trade manipulations, particularly in index options.
Governance concerns
Behavior addressed by Gensol Engineering
Addressing issues like Gensol Engineering, Pandey said that such behavior cannot be prevented solely by regulation. He stressed that these incidents occur despite stringent regulations, not because of their absence. The SEBI chief also clarified that merely adding more layers of disclosures and regulations may not help, but could instead burden honest businesses.
Regulation balance
Pandey on decision allowing investment bankers to continue unregulated activities
Pandey defended SEBI's recent decision allowing investment bankers to continue unregulated activities within the same legal entity, despite concerns over potential conflicts of interest. He assured that strict safeguards, including mandatory disclosure, would be enforced. The chairman also highlighted SEBI's strong investigatory performance, with 90% of judgments in favor of its rulings in 2025.
IPO update
What the SEBI Chairman said on the NSE IPO
On the NSE IPO, Pandey said, "There is no obstacle that will remain in case of NSE IPO." He confirmed that no regulatory hurdles remain for the NSE IPO, with final procedural steps nearing completion. The SEBI chairman also stressed that corporate governance can't be ensured by regulation alone but through effective surveillance, enforcement, and adjudication against those who misuse resources for personal gain.