Sebi's Crackdown on Financial Frauds

Markets regulator Sebi is intensifying its efforts to combat financial frauds, aiming to restore and maintain investor confidence. Chairman Tuhin Kanta Pandey highlights the importance of moving beyond mere compliance to empower investors with the necessary tools and information for accountability.

Challenges in the Current System

Pandey points out sophisticated methods like circular transactions and fund round-tripping used by companies to bypass regulations. These practices have led to a significant trust deficit in market disclosures and governance standards.

Sebi's Zero-Tolerance Approach

In response, Sebi is adopting a strict zero-tolerance policy, combining regulatory enhancements, stringent enforcement, and comprehensive investor education to safeguard the market's integrity.