Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), on Monday (April 6) highlighted key challenges facing businesses and regulators during the Corporate Governance Summit organized by a leading industry body.
Addressing the audience, Pandey said rising tensions in West Asia are affecting oil and gas supplies, which could ripple across the global economy. He also noted that artificial intelligence is stretching the operational capacity of companies, government agencies, and regulatory bodies alike.
On corporate governance, Pandey described it as “the nervous system of an organisation,” warning that companies with weak governance may appear strong from the outside but often respond slower to internal and external pressures. He acknowledged progress in improving governance frameworks, reducing information gaps, and reinforcing the independence of corporate boards.
The SEBI Chairman emphasized the vital role of independent directors in enhancing boardroom decision-making. “Significant efforts are underway to enhance their skills and effectiveness,” he added.
In a separate update, SEBI on Thursday (April 2) proposed reintroducing buybacks of shares through stock exchanges following changes in the taxation system. The buyback mechanism was paused from April 1, 2025, due to concerns over equitable treatment of shareholders and tax implications. The revised approach would now tax buyback proceeds as capital gains in shareholders’ hands, effective April 1, 2026, addressing prior concerns of unequal tax treatment.
SEBI highlighted that the open market route, widely used globally, can support continuous price discovery, improve liquidity, and enable efficient allocation of capital. The regulator has invited public comments on the proposal until April 23.
This announcement signals SEBI’s focus on balancing corporate governance, investor protection, and market efficiency while adapting to technological and geopolitical pressures.
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