Build better markets, not merely bigger markets: FM Sitharaman calls for quality-driven growth

Mumbai, April 25 (IANS) Calling for integrity-driven growth in India’s capital markets, Finance Minister Nirmala Sitharaman said that the country’s financial future depends on building stronger, more transparent markets rather than simply scaling them up.

Speaking at SEBI’s 38th foundational day event here, FM Sitharaman stressed quality over sheer expansion.

“Above all, we want better markets, not merely bigger markets. Size without integrity is fragility. Volume without investor protection is exploitation,” FM Sitharaman said.

“Growth without governance is unsustainable. And ensuring that is definitely a shared national priority and responsibility,” the finance minister added.

FM Sitharaman said that the journey towards Viksit Bharat will require extraordinary investment in infrastructure, manufacturing, energy transition, urban transformation, innovation and human capital.

“It cannot be financed by the public balance sheet or banks alone. It will require deep, well-regulated capital markets, where SEBI’s role becomes instrumental,” the finance minister stated.

Highlighting India’s increasing integration with global financial systems, FM Sitharaman observed that the country’s capital markets are closely linked to international investors and cross-border capital flows.

“India’s capital markets are deeply connected to the world. Our investors are global, our issuers engage international pools of capital and regulatory developments in one major jurisdiction increasingly influence market practice far beyond its borders,” the finance minister said.

“In that context, our regulatory conversations cannot remain only domestic. I would urge SEBI to institutionalise more frequent and more substantive periodic consultations with its global counterparts and leading market participants on emerging issues such as cross-border fraud, use of AI in markets, sustainable finance disclosures and settlement interoperability,” FM Sitharaman added.

The Union Minister further said that AI-led tools are making cyberattacks faster, more adaptive, scalable, and in some cases more autonomous in execution.

“Therefore, not just SEBI, but all Regulated Entities will have to remain exceptionally vigilant. The tools of attack are evolving at high speed, and the tools of defence must evolve even faster”, Finance Minister Sitharaman said.

–IANS

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