India–US Trade Deal to Boost Stability, Investment Climate: SEBI Chief

Mumbai, Feb 2026 : Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Wednesday said the India–US trade deal is expected to significantly reduce trade-related uncertainties, bring greater economic stability, and create a more conducive environment for higher investment inflows into the country.

Speaking on the sidelines of the launch of an outreach programme on corporate bonds, Pandey noted that clarity in trade relations and the removal of regulatory overhangs play a crucial role in improving investor confidence. “When trade frictions and uncertainties are addressed, capital formation improves and investment decisions gather momentum,” he said, adding that predictability in trade policies also has a positive impact on macroeconomic indicators such as the exchange rate.

Pandey’s remarks came amid questions on whether the recently announced trade agreement with the United States would help revive foreign investment inflows into India. Notably, a day after the agreement was announced and tariffs on Indian goods were lowered, foreign portfolio investors (FPIs) turned net buyers in the equity markets, purchasing Indian shares worth Rs 7,561 crore on Tuesday. This reversal in sentiment, he said, reflects growing confidence among global investors.

Highlighting SEBI’s role, Pandey said the market regulator is focused on creating a simple, predictable, and frictionless regulatory ecosystem that allows foreign investors to move capital into and out of India with ease. “SEBI has been continuously improving its processes to make investing in India easier and more efficient,” he said.

He outlined several reforms undertaken by the regulator, including the introduction of a common contract note, simplified registration norms, wider use of digital signatures, and the proposed netting of margins for foreign investors. These measures, Pandey said, are aimed at reducing procedural complexity and improving the overall ease of doing business in India’s capital markets.

Addressing concerns among market participants about the possibility of further tightening regulations in the derivatives segment, Pandey clarified that SEBI is not planning any new regulatory actions in this space at present. This reassurance comes in the backdrop of the Union Budget increasing the securities transaction tax (STT) on futures and options in an effort to curb excessive speculation. Pandey said SEBI continues to closely monitor the derivatives market using data-driven analysis and other inputs, but for now, the existing regulatory framework will remain unchanged.

On the corporate bond market, the SEBI chairman said the regulator is working closely with industry participants and investors to strengthen the segment. He acknowledged that the corporate bond market faces several structural challenges, including excessive reliance on highly rated issuers, fund-raising dominated largely by financial institutions, extensive use of private placements that limit transparency, and low liquidity in the secondary market.

Pandey said SEBI’s outreach initiatives aim to address these issues by encouraging wider participation, improving transparency, and deepening the market to support India’s long-term financing needs.

Team Maverick.