Appointment of new Sebi chairman: A key moment for financial services regulation in India

For the first time in a long while, the heads of India’s most important financial services regulators share a similar background. The Governor of the Reserve Bank of India (RBI) and the Chairman of the Securities and Exchange Board of India (SEBI) both worked together as peers at the Ministry of Finance. This strategic alignment, initiated by the Government of India (GoI), has been widely praised by market participants for its potential to improve coordination and accelerate decision-making. Given the multiple points of intersection between these two institutions and the markets, this move promises greater synergy.

Unlike many high-profile appointments that spark differing opinions among stakeholders and market experts, the appointment of Shri Tuhin Kanta Pandey as the new SEBI Chairman has been met with unanimous approval. His appointment represents a significant milestone, as he is the first serving Finance Secretary to be appointed to this prestigious role. This reflects the government’s strong commitment to ensuring that the financial markets are led by individuals with the right expertise and experience. Shri Pandey brings with him valuable experience from both sides of the regulatory equation—having served as a regulator as former Secretary of Finance and as a “regulatee” in his role as the former Secretary of the Department of Investment and Public Asset Management (DIPAM).

This appointment speaks volumes about the government’s transparent and unbiased selection process for key positions. It demonstrates a clear determination to place the right person in the right role, which enhances my respect for the government’s decision-making framework.

Given the dynamic and often volatile nature of the global financial markets, there has never been a greater need for a leader with a deep understanding of capital markets. The world is facing an unprecedented global crisis, and geopolitical issues of extraordinary magnitude are affecting economies worldwide. In such times, strong leadership at the helm of SEBI is more critical than ever.

It’s also noteworthy that Shri Pandey’s appointment follows closely after the presentation of the 2025 Union Budget, where he played a key role in budget preparation as Secretary of Finance. The Union Budget and the Economic Survey of 2025 signal a call for deregulation and trust-based governance, themes that align closely with the government’s economic vision.

The 2025 Budget and Economic Survey: A Call for Deregulation and Trust-Based Governance

The 2025 Union Budget underscores the need for regulatory reform by advocating for a “light-touch regulatory framework based on principles and trust to unleash productivity and employment.” This approach is not merely about changing regulations; it represents a crucial step toward unlocking India’s full economic potential.

The urgency for deregulation has never been greater. The Economic Survey of 2025 stresses the need to “get out of the way and trust the people, for we have no other choice.” This marks a paradigm shift in governance, reminiscent of the 1991 Budget, which laid the foundation for India’s economic liberalization. The Economic Survey rightly points out that deregulation plays a crucial role in enhancing investment efficiency. By eliminating unnecessary barriers, streamlining regulations, and improving the ease of doing business, India can create a more favorable environment for business growth. The Survey also emphasizes that deregulation will foster a positive sentiment, build trust in governance, and improve compliance by transforming the relationship between the governed and the governing into a true partnership.

As the Bhagavad Gita (Chapter 3, Verse 26) states:

“A great leader inspires others to do their right duties.”

“na buddhi-bhedaṁ janayed ajñānāṁ karma-saṅginām
joṣhayet sarva-karmāṇi vidvān yuktaḥ samācharan”