SEBI Chair Hints at Major Market Reforms: Easier FPI Netting, Closing Auction Soon

• SEBI Chairman Tuhin Kanta Pandey announced a consultation paper for easier foreign investor netting, potentially released today.
• A closing auction session for more stable and transparent closing prices is also in advanced stages of proposal.
• Pandey dismissed concerns about FPIs leaving India due to regulations, stating returns and global conditions are primary drivers.
• SEBI aims to deepen and diversify Indian markets, particularly the corporate bond market, and simplify FPI registration through digitization.
• The Swagat-FI system has been introduced to streamline FPI registration, improve KYC coordination with RBI, and clarify timelines.

Why It Matters: SEBI is actively pursuing significant market reforms to enhance foreign investment, market transparency, and bond market liquidity.