Sebi's reforms to aid further retail participation in markets, say experts

livemint.com:

MUMBAI : The Securities and Exchange Board of India's (Sebi's) series of initiatives, such as quicker transaction settlements and shorter listing timelines for public issues, have enhanced transparency and will aid greater participation in the capital markets, say experts. Regulatory reforms and innovations have brought investors an annual benefit of ₹900 crore, and the full adoption of certain other initiatives could potentially add ₹3,000 crore more through freed-up capital, according to a 30 July report by NSE Data and Analytics, a unit of National Stock Exchange of India Ltd. The Indian Capital Markets: Transformative shifts achieved through technology and reforms report highlighted the substantial growth of Indian capital markets, which have outpaced the global average in market capitalization.

All thanks to Sebi's regulatory reforms and BSE's innovations. The report said Sebi has democratized mutual fund investments through low-ticket SIPs (systematic investment plans) and lumpsum investments. It took note of the regulator’s proposal to introduce a ₹250 SIP to include lower-income segments in the market.

The report added that reducing the mutual fund redemption timelines to T+2 days could potentially accrue annual benefits worth ₹100 crore. Radhika Gupta, managing director and chief executive of Edelweiss Mutual Funds, said these moves enhanced mutual funds' transparency and investor-friendliness, which was pivotal in the industry's growth. Sebi has reduced the IPO listing timeline from T+6 to T+3 days, freeing up liquidity for investors and enabling faster access to capital for issuers.