SEBI Finalising Boosting Presence In Eight Locations To Combat Localised Frauds—Exclusive

Market regulator Securities and Exchange Board of India is finalising plans to reopen regional offices in eight key cities, sources told NDTV Profit.

The cities identified for the rollout include Chandigarh, Jaipur, Guwahati, Lucknow, Bhubaneswar, Hyderabad, Visakhapatnam, and Bengaluru.

According to people familiar with the matter, the decision is expected to significantly boost SEBI's on-ground capabilities, particularly in conducting local searches, inspections, and enforcement actions.

This move by the regulator aims to address market misconduct that often goes undetected in smaller or emerging markets due to limited local presence. The expansion is part of SEBI's broader effort to decentralise its operations and respond more swiftly to regional cases of fraud and investor grievances.

Background

NDTV Profit had previously reported on May 20, that SEBI was exploring strengthening its regional presence to enhance regulatory outreach and operational efficiency beyond Mumbai.

The move is supported by several SEBI staff members, who believe a focus on regional offices could provide more opportunities for career progression and reduce stagnation within the organisation, the people said.

As per one of the persons quoted above, there tends to be a stagnation in designations at the regulator and more vacancies that will arise through regional offices will likely help reduce it.

A key reason behind this shift is to enhance investor protection and education at the grassroots level, two people in the know told NDTV Profit.

By having a stronger presence in different parts of the country, particularly in tier-two cities, SEBI aims to build awareness around financial markets and ensure that retail investors are better informed, they said.

A local presence would allow SEBI to respond more swiftly to market misconduct and build closer relationships with stakeholders, including intermediaries and state-level authorities, they added.

This decentralised approach is expected to make the organisation more agile, inclusive, and responsive, as India's capital markets continue to expand, the people said.