SEBI wins the “Best Conduct of Business Regulator” Award in the Asia-Pacific region

India’s capital market regulator, the Securities and Exchange Board of India (SEBI), has been awarded the Asia-Pacific region’s “Best Conduct of Business Regulator” title, according to The Asian Banker.

This prize, which was presented at a Hong Kong event, demonstrates the significance of SEBI in enhancing the regulations governing the Indian capital markets. On behalf of the organisation, SEBI Permanent Member Kamlesh Chandra Varshney accepted the prize.

SEBI has implemented several key initiatives to boost the efficiency and reliability of the Indian stock market. One notable achievement is the introduction of the T+1 settlement cycle. Phased in starting in 2021 and fully operational by January 2023, this system significantly reduces the time for investors to access their funds post-trade, enhancing market liquidity and efficiency.

The Asian Banker highlighted SEBI’s role in enforcing stringent regulations, introducing innovative practices, ensuring fair treatment of customers, and maintaining market integrity. These efforts have elevated the standards of business conduct in India’s financial markets, aligning them with global best practices.

The T+1 settlement cycle means trades are settled one business day after they occur, aiming to increase market efficiency and reduce settlement risks. This method, set to be fully adopted in the U.S. by 2024, requires less capital for trade clearance and speeds up banking processes. Advances in digital technology and regulatory changes have facilitated this transition from T+2 to T+1, enhancing financial market resilience.