Archive · 30 Nov 2025
Sebi emphasizes governance over compliance in corporate India
Tuhin Kanta Pandey, the head of Sebi, spoke at an event about how companies in India often focus on following rules (compliance) rather than doing what's right (governance).
He said that just because a company has all the right paperwork and meetings doesn't mean it's truly well-run.
He also talked about ESG (Environmental, Social, and Governance) and how companies sometimes use it just for marketing instead of making real changes.
For regular investors, he advised being careful and not believing everything companies say about their governance.
It's important to diversify investments and stay sceptical.
Tuhin Kanta Pandey distinguished between compliance (meeting regulatory checklists) and governance (acting from conviction).
He criticized the current state of corporate governance in India, where companies often prioritize the appearance of governance over actual practice.
Pandey also addressed ESG, stating that it should be authentic and not just a branding exercise.
He advised retail investors to be sceptical of companies that heavily promote their governance and ESG practices, as these might not reflect genuine intent.
The solution, according to Pandey, is diversification and a healthy scepticism when investing in companies.
- Who
- Tuhin Kanta Pandey, chairperson of Sebi
- What
- Discussed the difference between compliance and governance in corporate India
- When
- At the 'Gatekeepers of Governance' summit
- Where
- India (specific location not mentioned)
- Why
- To emphasize the importance of genuine governance over mere compliance
- Speaker
- Tuhin Kanta Pandey
- Event
- Gatekeepers of Governance summit
- Key Message
- Governance is about conviction, not just compliance
- ESG Critique
- ESG should be authentic, not just a branding exercise
- Investor Advice
- Diversification and scepticism are key for retail investors