Mumbai: Marking four decades of the Sensex, SEBI chairman Tuhin Kanta Pandey on Thursday said India’s capital markets have moved beyond scale to a phase where quality of growth, institutional governance and technology resilience will define the next chapter of development.
Speaking at a BSE event celebrating 40 years of the benchmark index, Pandey said the journey of the Sensex mirrors India’s broader economic transformation and the maturation of its securities market ecosystem.
Launched in 1986, the Sensex was conceived as a transparent and credible barometer of market performance at a time when trading was manual and participation limited. Over the decades, its evolving composition has reflected the rise of private enterprise, the shift towards services, finance and technology, and deeper integration with global capital flows, Pandey said.
He noted that the continued presence of a few original Sensex constituents highlights the importance of governance, competitiveness and long-term value creation, even as markets undergo cycles of disruption and reform. “While markets respond to cycles, enduring value is built across generations,” Pandey said.
The SEBI chief also traced the parallel evolution of market infrastructure, pointing to the transformation of exchanges from open outcry trading floors to technology-driven, demutualised institutions, supported by clearing corporations and depositories that have strengthened risk management and operational resilience.
Looking ahead, Pandey said SEBI is sharpening its focus on governance of market infrastructure institutions (MIIs), announcing measures such as mandatory external performance evaluations, tighter board governance norms and clearer reporting structures for key technology roles, including CTOs and CISOs. These steps, he said, are aimed at ensuring that institutional credibility keeps pace with expanding participation.
Technology and artificial intelligence will play a growing role in supervision and investor protection, Pandey said, highlighting SEBI’s internally developed tools such as AI-driven surveillance systems to detect digital fraud, review mutual fund advertisements and analyse corporate disclosures. At the same time, he cautioned that emerging technologies bring new risks, making cybersecurity and cyber resilience central to regulatory oversight.
Pandey said the regulator is working on strengthening market-wide technology architecture, including validated UPI handles to prevent fraud, a cybersecurity framework for regulated entities, and a proposed long-term technology roadmap for MIIs. As markets become more complex and globally connected, he said, regulation must continue to evolve to preserve trust, integrity and stability.