Tuhin Kanta Pandey brings a light touch to SEBI compared to his predecessor

Tuhin Kanta Pandey, a bureaucrat who oversaw the LIC IPO and Air India’s privatisation, brings to Sebi not just administrative heft but also a distinctly new temperament.

New Delhi – 20 June – Soon after taking charge as the Securities and Exchange Board of India (Sebi) ’s new chairman on March 1, Tuhin Kanta Pandey walked into a room full of Sebi staffers and made an unusual admission to his new colleagues. “You understand the regulations and the ecosystem far better than I do,” he said, adding, “At times I will have my own views too”.

His comments marked a break from the more assertive style of his predecessor, Madhabi Puri Buch.

Instead of harsh reviews, there are now words of appreciation for good work. At the launch of investor protection measures like SEBI Check and Valid UPI handle, he introduced the team to reporters and applauded their efforts, bringing smiles and a sense of pride to the members involved.

Pandey, a bureaucrat who most recently oversaw the landmark IPO of Life Insurance Corp. of India and Air India’s privatisation, brings to Sebi not just administrative heft but also a distinctly new temperament.

MR Kumar, a former chairman of Life Insurance Corp. of India, who closely worked with Tuhin Kanta Pandey during the insurer’s IPO preparations, says, “He is a powerhouse of knowledge and data; everything was at his fingertips. He could visualise solutions for all issues arising out of new ventures. On the LIC IPO, he had done his own in-depth study about valuation, pricing, DRHP filing exercise. He has the vision to see things beyond what others are unable to. He had built an excellent team in DIPAM. He’s an astute gentleman”.

Pandey’s predecessor, Madhabi Puri Buch, earned a reputation for being a tough taskmaster and swift regulatory action at a pace that left some market participants scrambling. While her tenure brought about much-needed regulatory tightening, some said the intensity and speed may have left stakeholders struggling to keep up.

In contrast, Pandey has taken a more measured approach since assuming office. His initial focus has been on easing concerns, both internally among Sebi staff and externally among market participants. His style of leadership: calm and measured. Indeed, the meaning of his first name, Tuhin or “dew” in Hindi, kind of symbolises the shift at India’s capital markets watchdog.

Pandey’s first months at the regulator have been marked by a departure from the micromanagement some critics associated with Buch’s tenure. His approach favours optimum, not maximum, regulation. That means tightening rules where needed but also pruning those that create unnecessary friction. Departments have been asked to review existing regulations and eliminate redundant or overly restrictive provisions, a move that’s been welcomed by market participants and staff alike.

Ashish Kumar Chauhan, managing director and chief executive of NSE, says, “Tuhin Kanta Pandey brings with him a deep understanding of capital markets, honed during his impactful tenure at DIPAM. His leadership was instrumental in landmark achievements such as the historic IPO of LIC and the strategic disinvestment of Air India, among several other key reforms. Known for his consultative, open-minded and pragmatic problem-solving approach to regulation, Mr. Pandey also carries the decisiveness required to be a firm regulator when the situation demands. The first three months of his tenure as SEBI Chairman and the actions he took augur well for the continued strengthening of India’s capital markets and enhanced investor confidence.”

In keeping with his inclusive approach, Pandey has focussed on consultation. At his first board meeting, Pandey proposed deferring the previously approved plan to separate certain business functions of investment bankers that fall outside SEBI’s regulatory purview. The issue now stands resolved. Similarly, under his direction, SEBI has reconsidered its stance on fee collection by research analysts and investment advisers. Previously capped at quarterly collection despite industry pushback, the new approach allows annual fees—addressing a long-standing demand.

Pandey has also turned the lens inward. In one of his first proposals, he called for a high-level committee to frame a code of conduct for SEBI board members aimed at addressing conflicts of interest.

“Going forward, we will work to bring greater transparency, including in board-level disclosures,” he said during his first public address at the Moneycontrol-CNBC Global Wealth Summit.

Yet perhaps the most striking difference between Pandey and his predecessors is his emphasis on investor awareness. In recent weeks, he held extensive discussions with heads of exchanges, depositories, brokers, and other stakeholders to identify strategies for improving financial literacy and cybersecurity awareness. Market experts say that no recent SEBI chief has placed as much emphasis on investor education and safety as Pandey has. His view is straightforward: a well-informed investor is the market’s first line of defence.

Pandey’s history of executing major initiatives, such as the successful LIC IPO and the Air India divestment without much fanfare, has made market participants hopeful. They expect him to bring similar swift resolutions to long-pending issues such as the National Stock Exchange IPO.