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SBI Conclave September 2026: The Mind of a Regulator: A Practitioner’s Perspective

( Talk delivered by former SEBI WTM Ananth Narayan at the 13th SBI Conclave on 24th September 2026 ) The Mind of a Regulator: A Practitioner’s Perspective Chairman SBI, Managing Directors, SBI, and distinguished members of the financial services community: thank you to SBI for this opportunity.  Congratulations to the banker to every Indian for institutionalizing this conclave: it is truly an event that the financial ecosystem looks forward to. On the topic of “the mind of a regulator”, I have had the opportunity of looking at regulation from different angles: as a regulated market practitioner, an academic, an independent director, and as a regulator. Of course, where you stand on regulation depends on where you sit. In my talk today, I want to cover two broad areas. The first is about co-creating an ideal regulatory framework. The second is about regulatory intervention in financial markets. I. A good regulatory framework Let me begin with the design of the ideal regulatory frame...
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Business Standard: Getting equity derivatives right

(This article appeared on 15th September 2026 in Business Standard - link  https://www.business-standard.com/opinion/columns/getting-equity-derivatives-right-126091400950_1.html  ) Getting equity derivatives right Retail participation has moderated, but questions around suitability, market resilience and the dominance of short-term trading remain Derivatives and speculation aid price discovery, improve market depth and allow risk management. They are important for sustained capital formation. That said, since the Securities and Exchange Board of India released its first study of futures and options (F&O) trading in January 2023, three aspects of equity derivatives have warranted attention. First, nine out of 10 individual traders have consistently lost money in F&O, principally in index options. Second, cash-equivalent volumes in index options on expiry days were as much as 700-800 times underlying cash-market volumes. At expiry, prices determined by a relati...
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Business Standard: The impossible trinity, revisited

(The enclosed article appeared in Business Standard on 18th August 2026, link below:   https://www.business-standard.com/opinion/columns/the-impossible-trinity-revisited-126081701502_1.html  ) Large interventions across markets call for greater coherence in the RBI’s policy framework The Reserve Bank of India says it does not target any level for the dollar/rupee (USD/INR) exchange rate and intervenes in currency markets only to curb volatility. However, its foreign exchange (FX) intervention is often on such a scale and so sustained that it influences not just volatility, but also the path of the exchange rate. What, then, guides the RBI’s intervention? Separately, outside the Monetary Policy Committee (MPC), the RBI at times intervenes heavily in bond markets and manages banking liquidity to facilitate monetary-policy transmission. The external-sector consequences of such intervention get little explicit attention. One way to bring greater transparency and objectivity to int...
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Business Standard: The fine balance of good governance

 (This op-ed appeared in Business Standard on 21st July 2026, link below:   https://www.business-standard.com/opinion/columns/the-fine-balance-of-good-governance-how-boards-safeguard-value-integrity-126072001465_1.html   ) The fine balance of good governance   Good boards create value by safeguarding integrity, shaping strategy, and enabling execution   --------------- I have had the opportunity to view corporate governance from three vantage points: As an executive, as an independent director, and as a regulator.   Executives focus on delivering business outcomes and sometimes chafe at boards coming in the way. Directors worry about being held liable for outcomes outside their control. Regulators examine board decisions, usually well after something has gone wrong.   In my experience, the best boards set clear governance and broad strategy guardrails, while giving management the freedom to lead within them.    Accountability of board members...
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Business Standard: Alternatives to intervention - the case for freer markets, fewer distortions

 (This article appeared in Business Standard on June 23, 2026, link here:  https://www.business-standard.com/opinion/columns/alternatives-to-intervention-the-case-for-freer-markets-fewer-distortions-126062201293_1.html  ) Stepping in may address immediate pressures, but fewer distortions and freer markets could deliver more durable outcomes India’s policymakers have increasingly relied on intervention across markets to pursue multiple objectives simultaneously.   Currently, they want to reverse negative sentiment on the rupee. Meanwhile, fiscal policy is being used to cushion the impact of higher energy prices and likely adverse weather on inflation and growth, even as government borrowing rises. At the same time, they would like interest rates to stay low to support economic activities.   Achieving all this simultaneously is challenging. The Reserve Bank of India’s (RBI’s) subsidised swap window for attracting Foreign Currency Non-Resident (Bank), or FCNR ...
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Business Standard & CNBC Indianomics: India’s policy mix needs a rethink

 (This article appeared on 27th May 2026 in the Business Standard, link:  https://www.business-standard.com/opinion/columns/india-s-policy-mix-needs-a-rethink-on-capital-flows-and-rupee-stability-126052601924_1.html  - summarizing my views expressed on this CNBC Indianomics show hosted by Latha Vankatesh: https://youtu.be/E5U8F-kA17s?si=ucrLbGDz277Yhq_a ) One root cause of rupee weakness is distortions that deter capital flows Recent movements in the rupee warrant attention, but not overreaction. Even after the sharp rise in energy prices, economists expect India’s current account deficit in FY27 to settle at around 2-2.5 per cent of gross domestic product (GDP). This is manageable by historical standards. The Reserve Bank of India (RBI) also holds foreign exchange reserves of around $580 billion net of forward foreign currency sales. However, there are important policy takeaways. India needs sustained net foreign capital inflows, which ultimately require growth and inno...
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Business Standard: Future-ready market regulation

(This article appeared in Business Standard on 19th May 2026, link:  https://www.business-standard.com/opinion/columns/future-ready-market-regulation-needs-expertise-credibility-consultation-126051801680_1.html  ) Effective regulation requires consultation, expertise, incentives, and institutional credibility The draft Securities Market Code (SMC) consolidates and modernises the Securities Contracts (Regulation) Act, the Securities and Exchange Board of India (Sebi) Act, and the Depositories Act.   An ideal regulatory framework must mitigate Type I errors of market failures, while avoiding Type II errors of onerous regulations that constrain innovation and capital formation.   Balancing both objectives in increasingly complex markets requires transparent consultation, deep expertise, the right incentives, and institutional credibility.   Dialogue before regulation   Transparent consultation is essential for balanced regulation.   To Sebi’s credit, its ...
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