From T+1 to Cybersecurity: SEBI’s Efforts in Shaping India’s Securities Market

On January 16, 2025, SEBI organised India’s Securities Market Tech Stack in Mumbai, which showcased India’s tech journey in the Securities Market. The release by SEBI stated that India’s Securities Market has significantly grown and matured over the years, evolving in terms of people, processes, and products.

SEBI has played a crucial role in enhancing market efficiency through various initiatives. SEBI has been proactive in introducing policy reforms aimed at protecting investor interests while meeting the needs and aspirations of various market segments. These reforms ensure the market operates in a transparent, cost-effective, and efficient manner.

SEBI’s Role in Capital Raising

SEBI’s primary goal is to facilitate capital raising transparently and efficiently. Over the years, it has implemented several policies designed to protect investors and ease their access to markets. This approach has contributed to the significant growth of capital-raising activities in the Indian securities market.

As the Indian securities market has grown, it has provided various investment opportunities catering to the diverse needs of millions of investors. SEBI continues to focus on enhancing the scope of products and services available to investors.

Efforts in Settlement Cycles and Technology Use

India has pioneered the T+1 and T+0 settlement cycles globally. The use of technology has been a key enabler in implementing many market innovations, such as reducing IPO timelines from T+6 to T+3 and introducing features like the Pledge-Repledge mechanism, online KYC, Mutual Fund centralization, and ASBA in the secondary market.

SEBI’s Adoption of Technology for Operational Efficiency

SEBI has embraced technology to streamline its functioning across various areas, including development, regulation, inspection, and enforcement. The use of technology has significantly reduced the time required for registering intermediaries, issuing IPO observations, and resolving investor disputes online. Through its technological initiatives, SEBI has enhanced the ease of doing business for both market participants and retail investors, making the processes more efficient and accessible.

Focus on Cybersecurity

While SEBI continues to leverage technology to improve market efficiency, it also recognizes the potential risks associated with technology misuse. To safeguard the market and its own operations, SEBI has implemented robust cybersecurity measures for both market participants and its internal functions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.