NewsStocksSensex at 40: SEBI Chairman Charts Market Evolution from Manual Trading to Global IntegrationSensex at 40: SEBI Chairman Charts Market Evolution from Manual Trading to Global Integration
At the BSE event celebrating 40 years of the Sensex, SEBI Chairman Tuhin Kanta Pandey reflected on the remarkable transformation of India's capital markets from their manual, inward-looking origins in 1986 to today's globally integrated, technology-driven ecosystem. He emphasized the continuity of certain companies that have remained Sensex constituents since inception, attributing their sustained presence to strong governance and long-term value creation principles.
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SEBI Chairman Tuhin Kanta Pandey has marked the 40th anniversary of the Sensex by highlighting the remarkable transformation of India's capital markets from manual trading systems to sophisticated global integration. Speaking at a BSE celebration event, Pandey emphasized that the next phase of market development will prioritize quality, governance, and technological resilience over traditional scale metrics.
Historical Foundation and Forward-Looking Vision
Pandey reflected on the contrasting market landscape when the Sensex was launched in 1986, describing it as a period when "India's economy and markets were very different from what we see today." He noted that trading was manual, market participation was limited, and the economy remained relatively inward-looking.
"Yet, the idea behind the Sensex was forward-looking to create a transparent, representative and credible benchmark that reflected the performance of leading companies in the economy," the SEBI Chairman stated.
| Market Evolution Aspects: | Then vs Now |
|---|---|
| Trading System: | Manual to Technology-driven |
| Market Participation: | Limited to Widespread |
| Economic Orientation: | Inward-looking to Globally Integrated |
| Industry Focus: | Traditional to Services, Finance & Technology |
Institutional Resilience and Continuity
The SEBI chief highlighted the remarkable continuity of certain companies that have maintained their Sensex constituent status since the index's inception. "Over four decades marked by liberalisation, technological disruption, regulatory evolution and global shocks, these enterprises have adapted without losing sight of their core principles," Pandey observed.
He emphasized that this sustained presence reflects "sustained attention to governance, competitiveness and long-term value creation," reinforcing that while markets respond to cycles, enduring value is built across generations.
Pandey also noted the BSE's unique position as one of the oldest stock exchanges in Asia, having witnessed and endured global crises including World Wars, the Great Depression of 1929, oil shocks, dot-com bubble-burst, Global Financial Crisis, and the COVID-19 pandemic.
Strategic Priorities for Future Development
Outlining SEBI's vision for the next phase, Pandey emphasized that market development will be defined not just by scale, but by quality and sophistication. The regulator has identified several key priority areas:
| Priority Area: | Strategic Focus |
|---|---|
| Corporate Governance: | Strengthening standards and oversight |
| Sustainable Finance: | Promoting long-term value creation |
| Innovation Balance: | Encouraging advancement with investor protection |
| Technology Integration: | Responsible use in operations and supervision |
Technology and Risk Management
The SEBI Chairman highlighted the regulator's proactive approach to emerging technologies, particularly artificial intelligence in market supervision. He cited specific implementations such as SEBI Sudarshan for detecting unauthorized digital activity and AI-driven systems for monitoring advertisements and corporate disclosures.
"The next frontier for Sebi lies in anticipating risks before they surface as markets evolve with emerging technologies," Pandey stated, emphasizing the importance of staying ahead of potential challenges in an increasingly complex market environment.
As the Sensex celebrates four decades of tracking India's economic pulse, SEBI's strategic focus on quality governance and technological resilience positions the markets for sustainable growth in the evolving global financial landscape.
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