Camblesh Warshney, a member of the Sebi board, announced on Saturday that the market regulator is working on creating a second monitoring system designed to detect 'problematic elements' among companies whose shares are listed on the exchange, with the ultimate goal of excluding such organizations from the list of listings.
Speaking at an event organized by CPAI, Warshney also noted that the regulator is addressing small initial public offerings (IPOs) that may be unsuitable for the stock market and could potentially lead to losses for retail investors.
He emphasized that the second oversight system is intended to find unreliable entities among companies included in the registry. Warshney explained: 'Although we already have a monitoring system that allows us to identify manipulators in real time, Sebi handles this very well. We have almost completed the development of our second monitoring system plan, which will identify these dishonest elements in the capital market among listed companies so they can be excluded.'
The focus on listed companies also extends to firms seeking to enter the capital market, especially through small IPOs. According to Warshney, many small IPO issuances have been observed that are 'not actually intended for the capital market' and cause damage to retail investors, so Sebi is also working to identify such participants.
Warshney added that Sebi's efforts to increase the number of listed companies must be accompanied by increased attention to corporate governance and compliance, especially among small and medium-sized enterprises (SMEs) before they enter the stock market.
According to a report by the Association of Investment Bankers of India (AIBI), the SME IPO segment has significantly expanded: 267 issuances were conducted in 2025, and 156 since the beginning of 2026. The total amount raised from SMEs was 39,849 crore rupees between 2016 and 2026 (YTD), while the average size of an SME issuance increased from 8 crore rupees in 2016 to 45 crore rupees since the beginning of 2026.
Warshney stressed, however, that the regulator's main objective remains unchanged—to promote broader access to the capital market. He stated that it is necessary to ensure the listing of an increasing number of companies and noted that industry associations play an important role in identifying potential issuers and preparing them for listing.
Regarding investor participation, Warshney pointed to significant potential for expanding involvement in the securities market. He cited a study showing that only 9.5 percent of Indian households invest in this market, while 65 percent are aware of it. 'This means there is a huge gap of 55 percent of households who could invest if we reach them.'
He reported that Sebi launched Project Jagruk to raise awareness and investor participation, including work through offices in different states and partnerships with local panchayat institutions. Nevertheless, Warshney insisted that efforts to attract new investors must be accompanied by measures to protect them from fraud. He warned: 'If they are deceived at the earliest stage of investment, it will send a very negative signal for capital market growth.'
Sebi has implemented verification mechanisms and anti-fraud measures and emphasized the need for market participants to identify and expose dishonest players. Warshney also added that sustained growth in Systematic Investment Plan (SIP) contributions and increased participation in the capital market will support the country's economic growth.