MUMBAI: Sebi chief Tuhin Kanta Pandey said Saturday there was no need to change taxation laws for foreign portfolio investors as India has delivered double-digit returns in dollar terms and policy certainty is essential. Pandey emphasised Sebi’s focus on trust, transparency, and technology while highlighting the need for balanced regulation. He said Sebi would continue taking action against corporates for misleading disclosures, as flagged by its surveillance systems.
In a chat with a news channel, the Sebi chief said the regulator has evolved under successive leadership and benefits from a strong institutional framework. “I believe we have one of the best capital market infrastructures in the world. Our role is to continuously meet the challenges in a dynamic environment,” he said.
Pandey reiterated Sebi’s commitment to its 4 core principles – trust, transparency, teamwork, and technology – stressing that trust is crucial in regulatory decisions and engagement with market participants.
On taxation laws for FPIs, he stressed the importance of stability in policy. “Once certainty is established, it should not be frequently unsettled. India’s capital markets have delivered strong returns – MSCI India has provided 11% annualised dollar returns over the past five years, compared to 2% in emerging markets and negative returns in developed markets,” he said.
Pandey acknowledged normal market risks along with heightened geopolitical and geo-economic uncertainties. “Since Covid, global realignments have occurred, including supply chain shifts, trade tensions, and geopolitical events. These risks will persist, but India is actively engaging in bilateral trade agreements and FTAs to mitigate impacts,” he said. On transparency, he said Sebi is among the most open regulators, with extensive discussions and consultations before implementing regulations.