Market reforms will continue, Sebi chief said – first round completed, work on second is underway, read what are the future plans.

News Topical, Digital Desk : The stock market reforms will continue, and new market-related reforms may be announced soon. SEBI chief Tuhin Kant Pandey provided important indications today. The chief stated that the first round of reforms has been completed, and work on the second phase is underway.

What are the future plans?

The SEBI chief stated that the focus is now on strengthening intermediaries, especially KYC, securities transmission, and brokerage regulations. Regarding commodity market matters, SEBI has formed expert working groups to deepen its understanding of agriculture and commodity derivatives, and margin, position limit, and delivery rules are being reviewed. SEBI is also working with the GST Council to address GST-related bottlenecks in commodity trading, as GST clarity will improve delivery, settlement, and market liquidity. It is also working with the GST Council Secretariat to improve market participation. He added that a proposal for a single Investor Protection Fund for all exchange products is being considered for investor protection. Additionally, awareness programs will be expanded for farmers, FPOs, MSMEs, and traders. SEBI also stressed the need to review the framework for Electronic Gold Receipts (EGRs) and urged investors to invest only in regulated gold products. 

What else did the SEBI chief say? The SEBI chief stated that markets help hedge price risk, providing stable income to both producers and consumers. He added that SEBI has promoted tools like price insurance, which reduces the risk of volatility for traders. He explained that market signals help inform decisions in the real economy, from agriculture to manufacturing. He informed that at the regulatory level, SEBI has simplified rules, reducing the delivery period from five days to three days. To ease compliance for stockbrokers, the rules have been simplified and the penalty system has been rationalized, whereby only one exchange will take action against a broker for similar violations. SEBI has reviewed the penalty framework, adding 12 new penalties and removing 40, while several technical violations will now be treated as financial disincentives rather than penalties. Furthermore, the introduction of electricity futures on the NSE and MCX in July 2025 and the reduction of the nickel contract lot size in August 2025 have increased trading turnover in nickel futures.

Read More: IPO: Another major issue is being prepared, with shareholders approving the company's plan to raise Rs 6,650 crore.