Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey expressed optimism on Wednesday about the India–US trade deal’s potential benefits. He highlighted that the deal could reduce trade uncertainties, enhance economic stability, and attract more investments into India.
Pandey, speaking at a corporate bonds outreach program launch, emphasized that resolving trade frictions and regulatory issues could boost capital formation and accelerate investment decisions. He also mentioned that increased predictability could positively influence the exchange rate.
Following the announcement of the trade agreement and the reduction of tariffs on Indian goods, foreign portfolio investors became net buyers in the stock market. They purchased Indian equities worth Rs 7,561 crore on Tuesday, signaling a positive response to the developments.
SEBI’s role, according to Pandey, is to facilitate a straightforward and seamless system for foreign investors to transfer capital into India. He highlighted ongoing enhancements by SEBI to streamline processes and make investing in India more accessible.
Pandey reassured traders about regulatory stability in the derivatives market, stating that SEBI currently has no plans for new regulatory actions in this segment. He emphasized that SEBI closely monitors the market using data and existing frameworks will persist for now.
Regarding the corporate bond market, Pandey mentioned that SEBI is collaborating with industry stakeholders and investors to address challenges. These challenges include a heavy reliance on highly rated issuers, fundraising predominantly by financial institutions, limited transparency due to widespread private placements, and low liquidity in the secondary market.
