Copyright thehindubusinessline
The Securities and Exchange Board of India (SEBI) is reviewing the recent trading glitch at the Multi-Commodity Exchange (MCX) that delayed the market opening by over 4 hours last Tuesday. Speaking on the sidelines of the Morningstar Investment Conference on Tuesday, SEBI Chairman Tuhin Kanta Pandey said a “root cause analysis is underway” to determine the cause of the disruption, as such problems shouldn’t keep happening again and again. SEBI’s standard operating procedure has specified the actions to be taken in case of such incidents, he said. Tech change, new risks Pandey also said rapid technological change, growing market interconnectedness, and rising investor expectations have created fresh complexities for financial intermediaries. This requires firms to safeguard sensitive client data and critical infrastructure from sophisticated threats and mitigate third-party and outsourcing risks. “The rise of algorithmic and high-frequency trading brings efficiency but also demands robust risk controls, real-time monitoring, and compliance safeguards,” he said. Trust through culture He emphasised the need for a faster, more effective grievance redressal system, so that a culture of vigilance and adaptability is built to help investors trust the market. “Culture is the invisible infrastructure that ultimately underwrites investor trust…Regulation is the visible framework that reinforces it,” he said. “Today’s investors expect not just access to market, but access on fair terms, that gains transparencies in dealings, transaction execution, and payouts,” he said. “Intermediaries must ensure that their own book, blind flows are clean, separate, and auditable. Second. disclosure and due diligence.” Relief for old investors SEBI is exploring relief measures for long-term investors who bought physical securities before April 2019 but were unable to transfer them due to regulatory restrictions. “A proposal has been put forward to allow such transfers, which should provide long-awaited relief to physical shareholders,” he said. The regulator has also been reviewing the 30-year-old stockbroker’s regulations, which outline the roles and responsibilities of brokers and subbrokers. The circular with more relevant and streamlined regulations is expected to come by December, he said. Published on November 4, 2025
