LODR, delisting, KYC & AI norms under review as part of market reform push: SEBI Chairman Pandey

📌 Summary:

• SEBI Chairman Tuhin Kanta Pandey announced a comprehensive review of multiple market regulations to strengthen corporate governance, deepen capital markets and boost investor confidence
• Frameworks under review: LODR (Listing Obligations & Disclosure Requirements), delisting norms ("fair entry and fair exit"), derivatives, independent directors (IDs), short selling, and KYC for foreign investors/NRIs
• Independent Directors: must go beyond asking tough questions — to contribute on AI, cybersecurity, ESG, R&D, while protecting minority shareholders; SEBI to build a capacity-building network for IDs
• Market-deepening steps: review of Securities Lending & Borrowing and short selling to link cash and derivatives markets; commodity derivatives reforms (early pay-in for options, phased move to physical settlement in agri-contracts, position-limit review); electricity derivatives now trade on exchanges; bond-index derivatives planned with RBI
• Innovators Growth Platform being revamped so strategic sectors (AI, semiconductors, clean energy, bio-tech, advanced materials, defence-tech) can raise long-term capital
• Debt markets: corporate-bond market-making framework, municipal bond market deepening, and tokenization of corporate bonds
• AI on the regulatory agenda — useful for surveillance, risk and fraud detection but risks of opacity, bias, data protection; SEBI to issue responsible-AI guidelines and integrate IOSCO''s AI Supervisory toolkit

🎯 UPSC Relevance: GS2/GS3 — SEBI as a statutory regulator; corporate governance, investor protection, and the deepening of India''s capital markets.

📝 Prelims Facts:

• SEBI Chairman: Tuhin Kanta Pandey; SEBI is a statutory body under the SEBI Act, 1992
• LODR = Listing Obligations and Disclosure Requirements
• IOSCO = International Organization of Securities Commissions (global standard-setter for securities regulators)
• Electricity derivatives and proposed bond-index derivatives (with RBI) are newer instruments

🔑 Key Term: Delisting — removal of a company''s shares from a stock exchange; SEBI stresses both "fair entry and fair exit" for a well-functioning market.