At the Global FinTech Fest 2024, Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), highlighted how FinTech can be a game-changer in simplifying business operations and regulatory compliance. Her keynote address focused on the intersection of technology, regulation, and ease of doing business, emphasizing the crucial role that technology plays in creating a balance between innovation and compliance.
Compliance as a Catalyst for Trust and Growth
Buch addressed the often-overlooked benefits of regulatory compliance, particularly its role in building trust among investors and consumers. She shared insights on SEBI’s introduction of small and medium Real Estate Investment Trusts (REITs), where businesses welcomed regulation to foster trust and enable growth. Buch argued that regulation is not merely a hurdle but a fundamental component that protects both consumers and businesses, ensuring a level playing field in the financial sector.
Standardisation: The Key to Low-Cost Innovation
A significant part of Buch’s address focused on the importance of standardisation in promoting innovation. She discussed SEBI’s efforts to standardize data and API formats across India’s financial market infrastructure, which includes stock exchanges and depositories. This move has reduced the cost of innovation, making it easier for FinTech startups to integrate and innovate, leading to advancements across financial segments like mutual funds, bonds, and alternate asset classes.
Enhancing Market Efficiency Through Technology
Buch also highlighted SEBI’s initiatives to enhance market efficiency, particularly in reducing the time required for IPO approvals. By leveraging AI and other technologies, SEBI has significantly reduced the backlog of pending IPO applications. The regulator is focused on using technology to streamline approval and supervision processes, making it easier for businesses to seize market opportunities without unnecessary delays.
Simplifying Compliance for Businesses
SEBI is actively working to simplify compliance processes, with 16 working groups dedicated to exploring ways to make regulatory requirements more manageable. The adoption of technology to automate consultation processes and collect industry feedback has enabled SEBI to remain responsive to the evolving needs of the financial sector.
The Future of Compliance
Buch concluded by envisioning a future where compliance becomes an effortless part of business operations, akin to the act of breathing. Through continued integration of technology, SEBI aims to make compliance a seamless, unobtrusive aspect of business, allowing companies to focus on growth and innovation.
The insights shared by Buch at the Global FinTech Fest underscore the transformative potential of FinTech in simplifying business compliance and fostering a more efficient, innovative financial ecosystem.
