Tuhin Kanta Pandey, a seasoned bureaucrat, takes the reins at market regulator SEBI at a time when the stock market is going through a bit of a slump. This, more than anything else, is likely to dictate his priorities, at least in the near term.

“Given the current market downturn, the pace of regulatory changes effected over the past three years needs a rethink,” said JN Gupta, Managing Director of a proxy advisory firm and former executive director at SEBI.

Pandey’s predecessor was criticised for regulatory overreach and introducing guidelines at a pace that intermediaries and companies struggled to keep up with.

Any “pause” or “slowdown” in regulatory actions will have to be a fine balancing act, however, considering the regulator’s ongoing efforts to curb the frenzy in the derivatives space and the efforts to check unfair and fraudulent trade practices such as insider trading and front running.

“A key task will be to restore the faith of investors, especially overseas investors,” said Gupta.

The benchmark Nifty has slid over 15 per cent in the past five months, with foreign portfolio investors (FPIs) pulling out nearly $25 billion from Indian equities.

Managing the backlog of enforcement cases, making whole-time members and authorities within SEBI internally accountable, easing compliance burden for SMEs and ensuring regulatory oversight with operational flexibility for intermediaries will be key challenges for the new chief, according to Sumit Agrawal, Senior Partner, Regstreet Law Advisors.

Pandey may have to work on restoring public trust, especially in the light of the Hindenburg-Adani controversy.

“Given the dissent among its employees and the scrutiny of its actions or inactions before various judicial forums, regaining public confidence will be the need of the hour,” said Akshaya Bhansali, Partner, Mindspright Legal.

SEBI regulations will need to keep pace with rapid advancements in technology and the ever-increasing reach of social media. “The regulator’s efforts to tackle finfluencers and unregistered investment advisors are expected to continue and may even accelerate under the new chief,” said Vaibhav Kakkar, Senior Partner, Saraf and Partners.

Bureaucrat at the helm

Pandey’s background in DIPAM, handling major disinvestment deals and IPOs, gives him strong commercial and regulatory expertise. His tenure as Finance Secretary provided exposure to fiscal and economic policies, which may contribute to a broader perspective on financial regulation, said market watchers.

“Bureaucratic leadership is often associated with expertise in policy formulation, regulatory frameworks, and interdepartmental coordination, which may influence SEBI’s approach to market regulation and enforcement,” said Kunal Sharma, Partner, Singhania & Co.

“His leadership may help align SEBI’s policies with broader economic goals. His governance experience ensures a structured, long-term approach, particularly as SEBI prepares for significant regulatory reforms like the Securities Market Code,” added Agrawal.