Market regulator Securities and Exchange Board of India (SEBI) will soon issue directions on the expiry schedule for equity derivatives contracts and expects to clear pending issues surrounding the National Stock Exchange’s (NSE) long-awaited initial public offering (IPO), says SEBI chief Tuhin Kanta Pandey.
Speaking with reporters on the sidelines of at the 16th Capital Market Conference organised by ASSOCHAM in New Delhi, the SEBI chief says the remaining regulatory concerns in the NSE IPO issue are likely to be addressed soon.
The IPO proposal, one of the most anticipated in Indian capital markets, has been under SEBI's review due to concerns over compensation to key executives, technology governance and the NSE's control over its clearing corporation. “All outstanding issues will be resolved shortly,” Mr Pandey assured.
The SEBI chairman also confirmed that the regulator has concluded internal committee deliberations on its March proposal to standardise expiry dates of equity derivative contracts. A formal clarification is expected before the end of this month. The consultation paper had recommended that all equity derivatives expire uniformly on either Tuesdays or Thursdays across exchanges to optimise spacing and improve market efficiency.
On a separate front, SEBI is also probing serious lapses at IndusInd Bank. The crisis-hit private lender is facing scrutiny after reports of accounting irregularities and governance failures surfaced earlier this year. While the Reserve Bank of India (RBI) is examining the matter from a banking perspective, Mr Pandey said SEBI is independently looking into any violations under its remit by senior management. “If there are any egregious violations by anyone in their capacity, SEBI is looking into it,” he added.
The comments come at a time when India’s capital markets are showing unprecedented growth. Mr Pandey highlighted that, over the past decade, India’s capital markets have witnessed massive growth. Around Rs93,000bn (billion) (or Rs93tn - trillion) has been raised through both equity and debt issuances in the past 10 years. The average equity capital raised per year stands at around Rs2,200bn (Rs2.2tn).
In FY24-25 alone, the country saw a record Rs1,700bn (Rs1.7tn) raised via 320 IPOs— the highest ever by volume — underscoring the growing depth of Indian equity markets.
The total market-capitalisation of listed companies surged from Rs150,000bn (Rs150tn) at the end of FY18-19 to Rs423,000bn (Rs423tn) in April 2025, reflecting robust investor confidence and corporate performance, the SEBI chief says.
Average daily trading volumes have nearly tripled, from Rs350bn (Rs0.35tn) in FY18-19 to over Rs1,000bn (Rs1tn) now, showing deeper liquidity and broader participation in the markets.
Retail investor participation has also soared. The number of unique investors in the securities market has tripled since March 2019, reaching over 130mn (million) as of April 2025, Mr Pandey added.
SEBI is also pushing for market innovation and risk management tools, having recently granted in-principle approval for electricity derivatives and introduced a new asset class—specialised investment fund (SIF)—to bridge the gap between mutual funds and portfolio management services, Mr Pandey says.
The SEBI chief also urged industry leaders to uphold strong governance standards, saying that India’s journey towards becoming a developed economy would hinge on the transparency and resilience of its capital markets. “The capital markets are not just enablers—they are integral to this transformation.”
The convergence of upcoming regulatory reforms, high-profile investigations and landmark IPOs marks a pivotal phase for SEBI and India’s broader financial ecosystem, he added.
