Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey announced that the agency is currently reviewing a recent trading disruption at the Multi-Commodity Exchange (MCX), which resulted in a market opening delay of over four hours last Tuesday. Speaking at the Morningstar Investment Conference, Pandey emphasized that a “root cause analysis is underway” to identify the issue, highlighting that such incidents should not recur frequently.
Pandey noted that SEBI’s standard operating procedures dictate specific actions to be taken during such disruptions.
Addressing the audience, he remarked on the challenges posed by rapid technological advancements, increased market interconnectedness, and heightened investor expectations, which he said have created new complexities for financial intermediaries. He stressed the importance of protecting sensitive client data and critical infrastructure from sophisticated cyber threats, as well as managing risks associated with third-party services and outsourcing.
“The rise of algorithmic and high-frequency trading brings efficiency but also requires robust risk controls, real-time monitoring, and compliance safeguards,” Pandey stated.
He also underscored the necessity for a more effective grievance redressal system that fosters a culture of vigilance and adaptability, ultimately helping to build investor trust. “Culture is the invisible infrastructure that ultimately underwrites investor trust… Regulation is the visible framework that reinforces it,” he explained. He stressed that modern investors seek not only market access but also fair terms that enhance transparency in transactions and payouts.
To enhance investor confidence, he called for intermediaries to maintain clean, auditable books and ensure thorough disclosure and due diligence practices.
In an effort to address long-standing issues for investors, SEBI is considering relief measures for those who purchased physical securities before April 2019 but faced restrictions on transferring them. “A proposal has been put forward to allow such transfers, which would provide overdue relief to physical shareholders,” he noted.
Additionally, SEBI is in the process of reviewing stockbroker regulations, which have been in place for 30 years. A revised circular outlining updated roles and responsibilities for brokers and subbrokers is anticipated by December.
The information was published on November 4, 2025.
