At the Association of Mutual Funds in India (AMFI) annual event, Sebi chief Madhabi Puri Buch made a pointed statement about regulatory humility, saying, “Markets today are so complex; any arrogant regulator is doomed to fail.”
Buch emphasized the need for constant adaptation and openness in regulation, especially in today’s dynamic financial environment.
Buch addressed the crowd on her continued focus on mutual funds and the growing role of Real Estate Investment Trusts (REITs), acknowledging the controversies her focus often sparks.
“Sometimes I am asked why I talk about mutual funds so much... Nowadays I talk a lot about REITs. But people say, 'Oh, why is she talking so much about this? ICICI is involved, etc.' All this leads to controversy, you see," she said.
Buch referred to the mutual fund industry as “Sebi’s elder son (Bada Beta),” underlining its importance in fostering financial inclusion.
“Mutual funds play a crucial role in making wealth creation accessible to every citizen,” she said, emphasizing Sebi’s commitment to the industry's growth as a key driver of financial inclusion in India.
On investor engagement, Buch highlighted the need for stronger retail participation, particularly in voting at AGMs, where retail investors often lack a voice. She stressed the significance of the Stewardship Code, which was adopted by both the mutual fund and insurance industries. “There is huge value in ensuring that the investor’s voice is heard, and the ecosystem works in the interest of shareholders,” she said, expressing confidence in the mutual fund industry’s ability to strengthen this framework.
She also touched on the development of India’s bond market, mentioning that the market is now at ₹20,000 crore a month. “We are waiting for some approvals from the RBI, and hopefully, that number will grow even further,” she remarked. She noted that initiatives such as an online bond platform would help democratize access to fixed-income investments and promote liquidity in the market.
In addition to these points, Buch shared Sebi’s focus on technology, with a dozen AI projects underway aimed at streamlining regulatory processes. “We are working to improve efficiency and facilitate faster approvals through technological advancements,” she said.