3 min readMumbaiAug 7, 2026 11:03 AM IST
The Securities and Exchange Board of India (SEBI) is planning to revamp the Securities Lending and Borrowing scheme (SLB), launch Setu portal and a pilot project on the tokenisation of corporate bonds using distributed ledger technology.
The SLB scheme needs revamping to improve price discovery and facilitate interlinkage between the cash and derivatives segments, SEBI Chairman Tuhin Kanta Pandey said. “Our focus extends to the modernization of the market intermediary interface,” Pandey said in the Annual Report of SEBI.
SLB scheme is a regulated mechanism that allows investors to lend their shares to other market participants for a fee, with the borrower obligated to return equivalent shares at the end of the agreed period. It plays an important role in enabling short selling, improving market liquidity, and supporting efficient price discovery.
Story continues below this ad
Setu is an online portal for SEBI-regulated intermediaries to register, file applications, pay fees and complete regulatory compliance tasks.
Tokenisation of corporate bonds is the process of representing ownership or rights in a corporate bond as digital tokens on a blockchain. Each token can represent all or part of a bond, allowing it to be issued, traded and managed electronically.
“We will continue our agenda to strengthen India’s commodity markets — both agri and non-agri. We will continue our focus on deepening the cash equities market to spur capital formation,” Pandey said.
“To further accelerate capital mobilisation, we will introduce a fast-track mechanism for launch of AIF schemes and develop a single window clearance system for intermediaries associated with multiple MIIs, significantly reducing the compliance burden,” SEBI Chairman said.
Story continues below this ad
“In tandem, we are advancing our cybersecurity frontiers by preparing the market for quantum-era risks and developing long-term technology roadmaps for our MIIs,” he said.
He said capacity building remains central to the effectiveness of SEBI in navigating an increasingly complex and dynamic securities market. SEBI has placed a renewed strategic focus on strengthening the capabilities of its workforce.
Apart from exposure to specialised training in emerging areas such as technology, data analytics and surveillance, SEBI officials are actively engaging with peer regulators and international bodies to get exposure to global best practices and share our experiences in areas such as SupTech, technology-enabled supervision and market development,” Pandey said.
He said SEBI has decided to expand its reach through the opening of local offices. This will enhance SEBI’s connect with investors at a local level, apart from improving its ability to monitor unregulated activities and gather market intelligence, he said.
Story continues below this ad
SEBI is harnessing technology to strengthen market oversight and uses advanced analytics, AI/ML models to detect complex market manipulation patterns and network-based frauds, he said. “To improve efficiency and speed of communication with external entities, we have introduced a Single Universal Platform for Communications (SUPCOMS). Further to digitally enable quasi-judicial proceedings an e-adjudication portal has been launched,” he said.
“During 2025-26, we introduced a series of reforms, yet our vision for the future is even more ambitious. In the coming year, SEBI will continue to focus on identifying and removing regulatory redundancies, simplifying procedural requirements and leveraging technology to ease the compliance burden,” he said.
