MUMBAI: Markets regulator Sebi is working on multiple fronts to place a check on financial frauds that chip away at investor confidence. Unless the ecosystem moves beyond check-box compliance and arms investors with tools and information to hold corporate decision-makers accountable, that trust could falter, said Sebi chairman Tuhin Kanta Pandey.“Circular transactions, round-tripping of funds, and diversion of shareholder money through complex multi-layered structures and misleading disclosures” are among tactics companies have used to circumvent regulation and exploit gaps in oversight, Pandey said. The result, he added, has been a serious erosion of confidence in market disclosures and governance standards. He was speaking at an ICAI event on Aug 1. Sebi’s response has been to adopt a zero-tolerance stance, backed by a mix of regulatory tightening, enforcement, and investor education.