NSE IPO: Will not let commercial interests supersede public interest, says SEBI Chairman

“We will not allow commercial interest to take over the general public interest, and it is for the regulator to ensure that,” the chairman told reporters on the sidelines of a Corporate Governance Summit organised by CII.

In his speech earlier at the event, Pandey raised concerns about corporate governance failures in large corporates as they can impact economic and financial stability.

The comments came in the wake of SEBI barring Gensol Engineering Ltd and its promoters Anmol Singh Jaggi and Puneet Singh Jaggi from dealing in markets due to mis-utilization and diversion of the company’s funds in a fraudulent manner.

“Governance failures in large corporates can have ripple effects across the market and economy. Preventing such failures is essential to maintaining financial stability,” Pandey said in his address.

He said SEBI, by mandating disclosures, board structures, and oversight mechanisms, aims to create a self-regulating environment that encourages ethical and responsible corporate behaviour.

“For us, governance is not just a matter of oversight—it is a strategic imperative to protect the interests of stakeholders (especially the minority shareholders) and maintain the integrity of the market,” he said.

Pandey stressed that companies with sound governance structures are better positioned to manage risks, respond to stakeholder expectations, and adapt to changing environments. This long-term orientation supports value creation, financial resilience, and sustainability.

He said SEBI, as a regulator, has laid down a comprehensive governance framework on corporate governance. It has taken measures to protect the interest of investors, at the same time tried to facilitate ease of doing business.

“We are conscious that over-regulation can stifle growth and innovation. At the same time, too little regulation can also lead to decline in trust of stakeholders and adversely impact growth,” he said.

Emphasising on the need for optimum regulation, Pandey said that regulations need to be rationalized by removing what is no longer relevant, and reducing overlaps. Stable and adequate financial regulation can help in creating a high trust environment, increase attractiveness for investors and promote economic growth.

He said there was a need to move from a thinking of minimum compliance to maximum governance. “Boards must rise above routine and ask difficult questions and auditors and independent directors must act as gatekeepers of integrity,” he said.