New Delhi, August 22 (IANS). SEBI i.e. Securities and Exchange Board of India (SEBI) is reviewing the existing framework for monitoring and disclosures related to the utilization of funds raised through public issues, with the aim of providing more timely and useful information to investors and simplifying the compliance process for companies. SEBI Chairman Tuhin Kant Pandey said this while addressing the Annual Directors Conference 2026 of the Institute of Directors on Saturday.
SEBI Chairman Tuhin Kant Pandey said effective corporate governance does not depend only on the number of disclosures, but also on the quality, relevance and usefulness of the information provided to investors.
He said SEBI is currently reviewing the mechanism under which the use of funds raised by public issues is monitored and reported by companies. The regulator wants to ensure that such information reaches investors more quickly and also reduces unnecessary compliance burden on companies.
“Real transparency lies not in the quantity of information, but in its quality, timeliness and usefulness,” Pandey said. He stressed that the objective of disclosure rules should be to help investors make better decisions and not just increase reporting formalities.
The SEBI chief said that the regulator has continuously strengthened the rules related to disclosure of important events and information over the last few years. Under this, provisions like materiality thresholds and prescribed deadlines have been implemented, so that important information reaches investors without delay and there is uniformity in disclosures.
He also said that SEBI is also considering improving the rules related to related party transactions. The proposed changes aim to make compliance more straightforward and practical for companies, while also ensuring the protection of investors' interests.
Pandey said the regulatory framework should be one that is balanced and proportionate and does not create repeated compliance burden in the same case. In this direction, SEBI is also considering a framework under which companies listed in more than one stock exchange should not be penalized multiple times for the same violation.
“Our aim is to make regulation more effective, while fully maintaining its core objectives and investor protection,” he said.
–IANS
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