SEBI Chief Highlights Data's Critical Role in India's Evolving Capital Markets

In a significant address, SEBI Chairman Tuhin Kanta Pandey highlighted the crucial role that data now plays in India's capital markets, equating its importance to that of capital and liquidity. Speaking at the CDSL Reimagine Symposium, Pandey described data as an invisible yet indispensable layer of market infrastructure, crucial for the sector's growth.

Pandey illuminated the shift from traditional market infrastructure like exchanges and depositories to the unseen realm of data, which has transformed how the markets operate. He pointed out India's leap from 3.8 crore unique investors in 2019 to 13.9 crore today and over 21 crore demat accounts, emphasizing the market's growing reach beyond metropolitan areas.

The SEBI chief outlined initiatives such as the Electronic Consolidated Account Statement and system-driven disclosures as pivotal to fostering transparency and investor trust. However, Pandey warned of the systemic risks posed by data failures in an era where mobile trading accounts for over 20% of market activity.

Emphasizing the imperative of data governance, Pandey advocated for it to be a board-level priority, with stringent cybersecurity measures to safeguard against rising threats. He also underscored the ethical use of technology, cautioning against the dangers of opaque algorithms and unchecked automation that could jeopardize market fairness.

Pandey underscored that the future stability of India's capital markets lies in a concerted effort between regulators, market institutions, intermediaries, and technology providers. A secure and resilient market environment, sustained by responsible technology use and governance, is vital for the sustained confidence of investors.