Addressing the Global Fintech Fest 2022, SEBI chief Madhabi Puri Buch said that the regulator plans to narrow regulatory gap in the startup ecosystem.
Buch highlighted few points that would make the regulator supportive of a business.
She said that anonymity in the financial world is absolutely unacceptable by the regulator.
She further added that it is the regulator’s principal job to ensure that investors make informed decisions, which requires transparency.
“If your business model is woven around a black box, which is not open to sunlight or not capable of being audited or validate, it cannot be permitted,” Buch said.
Buch also added that the regulator is bound to be supportive if one’s business model facilitates financial inclusion. She said such a model will be a sustainable business model.
She further pointed out about building barriers for customers and said “We do not want ‘Abhimanyus’ in our market.”
“Building barriers to exit for customers is unlikely to find favour with the regulator. When the regulator shows up on your door, you will be vulnerable to regulatory risk,” she said.
The SEBI chief also pointed out that the regulator is actively engaged in creating ASBA-like system for the secondary stock market to reduce structural vulnerability.
