Economic Survey: SEBI steps up investor protection, integrity to secure capital markets
SEBI's recent initiatives focus on investor protection, regulatory efficiency, broader transparency and market growth highlights the Economic Survey.
- Jan 29, 2026,
- Updated Jan 29, 2026 3:06 PM IST
India's capital markets regulator, the Securities and Exchange Board of India (SEBI), has implemented a series of initiatives focused on regulatory excellence, market growth, and investor protection, as detailed in the latest Economic Survey.
These actions reinforce market integrity and transparency, while promoting a resilient and inclusive financial ecosystem. SEBI's efforts are recognised in the Economic Survey for fortifying market confidence through improved verification protocols, enhanced disclosure requirements, and strengthened risk surveillance across the securities market.
A key investor protection step is the mandate for a new UPI address structure for all SEBI-registered intermediaries collecting funds from investors, effective from 1 October 2025. This measure aims to provide a secure, verified payment channel for financial transactions. Additionally, the "SEBI Check" was introduced to enhance the safety and accessibility of investor payments.
To address financial fraud and scams, SEBI launched a joint media campaign titled "SEBI vs SCAM" in collaboration with Market Infrastructure Institutions in July 2025. The campaign focuses on identifying red flags, raising awareness about verification protocols, trusted redressal mechanisms, and good digital practices, helping educate investors and promote safer digital engagement.
SEBI has also advanced financial inclusion through a nationwide training programme for block-level Panchayat representatives, in partnership with the Ministry of Panchayati Raj. This initiative promotes financial literacy and investor awareness at the grassroots. Furthermore, SEBI has directed all digital platforms of regulated entities to comply with the Rights of Persons with Disabilities Act, 2016, ensuring all investors can participate fully in the securities market.
The Economic Survey highlights outreach programmes on municipal bonds and finance, which have fostered stakeholder engagement and recommended measures to deepen the municipal bond market. Credit rating agencies have been advised to adopt an EL-based rating scale for municipal bonds intended for infrastructure projects.
SEBI has aligned guidelines for the issuance and listing of securitised debt instruments with Reserve Bank of India (RBI) norms to enhance transparency and ease of doing business. This alignment facilitates data dissemination to investors and credit rating agencies, supporting robust market development.
Good regulation is not about tighter control, it’s about better outcomes. The recent initiatives by SEBI reflect a definite shift in India's approach to capital market regulation. The focus has steadily shifted from reactive oversight to proactive, principle-based regulation, one that aims to deepen markets without compromising investor protection ,said Trivesh D, COO at Tradejini "What clearly emerges is that SEBI's effort is to refine the regulatory touch rather than merely tighten it. Measures around improved disclosures, stronger governance norms, and closer supervision of intermediaries reflect an intent to reduce information asymmetry while allowing genuine participants to innovate and scale, he said.
Regulatory efficiency has been promoted by removing the requirement for SEBI-registered stock brokers to obtain separate approval to operate in GIFT-IFSC under a Separate Business Unit. SEBI has also mandated minimum information to be provided to audit committees and shareholders for approval of related-party transactions, strengthening governance and review processes.
For investor onboarding, SEBI now permits registered intermediaries to use the "e-KYC Setu System" of the National Payments Corporation of India as an alternative to Aadhaar-based e-KYC authentication. This move is expected to improve operational efficiency and accessibility for investors.
Furthering market development, SEBI has introduced the Past Risk and Return Verification Agency to offer independent verification of risk and return claims made by investment advisers, research analysts, and algorithmic trading providers.
The Economic Survey also notes the launch of electricity derivatives at the NSE and new measures in equity derivatives markets to curb volatility and enhance risk management, such as directing exchanges to choose a uniform expiry day and recalibrating position limits. These steps aim to ensure India's capital markets remain robust, accessible, and attractive for all stakeholders.
SEBI has taken really good steps in the last one year to improve financial transparency in the market. One recent change was the registered UPI handle that all RAs and RIAs had to make. This means all RAs and RIAs have to collect money via this registered UPI ID which has the SEBI Check assigned to it, said Shashank Udupa, SEBI registered RA and Fund Manager at Smallcase.
"Another very interesting change we are all looking forward to is the Gift IFSC ease of compliance. Now stock brokers do not need a separate approval from SEBI to get themselves registered in GIFT IFSC. As an RA I welcome these changes by SEBI as it improves not just financial literacy but also investor protection of many market participants," he adds.
India's capital markets regulator, the Securities and Exchange Board of India (SEBI), has implemented a series of initiatives focused on regulatory excellence, market growth, and investor protection, as detailed in the latest Economic Survey.
These actions reinforce market integrity and transparency, while promoting a resilient and inclusive financial ecosystem. SEBI's efforts are recognised in the Economic Survey for fortifying market confidence through improved verification protocols, enhanced disclosure requirements, and strengthened risk surveillance across the securities market.
A key investor protection step is the mandate for a new UPI address structure for all SEBI-registered intermediaries collecting funds from investors, effective from 1 October 2025. This measure aims to provide a secure, verified payment channel for financial transactions. Additionally, the "SEBI Check" was introduced to enhance the safety and accessibility of investor payments.
To address financial fraud and scams, SEBI launched a joint media campaign titled "SEBI vs SCAM" in collaboration with Market Infrastructure Institutions in July 2025. The campaign focuses on identifying red flags, raising awareness about verification protocols, trusted redressal mechanisms, and good digital practices, helping educate investors and promote safer digital engagement.
SEBI has also advanced financial inclusion through a nationwide training programme for block-level Panchayat representatives, in partnership with the Ministry of Panchayati Raj. This initiative promotes financial literacy and investor awareness at the grassroots. Furthermore, SEBI has directed all digital platforms of regulated entities to comply with the Rights of Persons with Disabilities Act, 2016, ensuring all investors can participate fully in the securities market.
The Economic Survey highlights outreach programmes on municipal bonds and finance, which have fostered stakeholder engagement and recommended measures to deepen the municipal bond market. Credit rating agencies have been advised to adopt an EL-based rating scale for municipal bonds intended for infrastructure projects.
SEBI has aligned guidelines for the issuance and listing of securitised debt instruments with Reserve Bank of India (RBI) norms to enhance transparency and ease of doing business. This alignment facilitates data dissemination to investors and credit rating agencies, supporting robust market development.
Good regulation is not about tighter control, it’s about better outcomes. The recent initiatives by SEBI reflect a definite shift in India's approach to capital market regulation. The focus has steadily shifted from reactive oversight to proactive, principle-based regulation, one that aims to deepen markets without compromising investor protection ,said Trivesh D, COO at Tradejini "What clearly emerges is that SEBI's effort is to refine the regulatory touch rather than merely tighten it. Measures around improved disclosures, stronger governance norms, and closer supervision of intermediaries reflect an intent to reduce information asymmetry while allowing genuine participants to innovate and scale, he said.
Regulatory efficiency has been promoted by removing the requirement for SEBI-registered stock brokers to obtain separate approval to operate in GIFT-IFSC under a Separate Business Unit. SEBI has also mandated minimum information to be provided to audit committees and shareholders for approval of related-party transactions, strengthening governance and review processes.
For investor onboarding, SEBI now permits registered intermediaries to use the "e-KYC Setu System" of the National Payments Corporation of India as an alternative to Aadhaar-based e-KYC authentication. This move is expected to improve operational efficiency and accessibility for investors.
Furthering market development, SEBI has introduced the Past Risk and Return Verification Agency to offer independent verification of risk and return claims made by investment advisers, research analysts, and algorithmic trading providers.
The Economic Survey also notes the launch of electricity derivatives at the NSE and new measures in equity derivatives markets to curb volatility and enhance risk management, such as directing exchanges to choose a uniform expiry day and recalibrating position limits. These steps aim to ensure India's capital markets remain robust, accessible, and attractive for all stakeholders.
SEBI has taken really good steps in the last one year to improve financial transparency in the market. One recent change was the registered UPI handle that all RAs and RIAs had to make. This means all RAs and RIAs have to collect money via this registered UPI ID which has the SEBI Check assigned to it, said Shashank Udupa, SEBI registered RA and Fund Manager at Smallcase.
"Another very interesting change we are all looking forward to is the Gift IFSC ease of compliance. Now stock brokers do not need a separate approval from SEBI to get themselves registered in GIFT IFSC. As an RA I welcome these changes by SEBI as it improves not just financial literacy but also investor protection of many market participants," he adds.