At the Global Fintech Fest 2024, SEBI Chairperson Madhabi Puri Buch delivered a compelling address outlining her goals for corporate governance in India. She emphasized how crucial it is to approach compliance as a continual, quiet component of every company that the market regulator oversees, rather than just as something that needs to be completed. As Buch stressed in her August 29 address, true compliance should sound like a “low hum” that underpins every move a business makes. Despite Hindenburg Research’s critique, this is in line with SEBI’s ultimate goal of integrating compliance into corporate life in a discreet but consistent manner.

The Vision of Compliance as a Continuous Process

Traditionally, people see compliance as a burdensome task. However, Buch’s vision changes this view. She wants organizations to take a more active and connected approach to compliance.

Buch emphasizes moving away from simply checking boxes for compliance. Instead, it should be a key part of the company’s culture and daily operations, especially in the stock market. The SEBI chairperson believes this shift requires companies to change how they think. They should see compliance as a vital part of sustainable growth, not a hurdle.

This means thinking about compliance early in any business decision or process. It helps ensure that companies follow regulations without limiting innovation.

Madhabi Puri Buch’s perspective on compliance in businesses

Madhabi Puri Buch who is the SEBI Chairperson, believes businesses should make compliance a core part of who they are. She wants companies to create an environment where following rules is natural, not an extra task.

She says that this mindset helps companies focus on being innovative and growing. They can trust that compliance is part of everything they do. This modern idea shows that having a strong compliance culture is good for businesses. It helps build trust with investors, manage risks, and ensure they last long.

Buch encourages teamwork among companies. She wants them to think about compliance first. For her, following the rules is not just a legal duty, but a key to strategy.

The analogy of compliance as a “low hum”

Buch used a strong analogy to explain the idea of continuous compliance. He said it is like a “low hum” in how a company works. Just like we often don’t notice the quiet sound of electricity running our devices, compliance should be a part of a company’s operations. It should be mostly unseen but always there.

This idea shows that compliance should not cause disruptions. Instead, it should be a natural part of how a company operates. By creating a culture where rules are a part of daily tasks, businesses can stop reacting to compliance issues and start seeing it as a helpful part of their growth. This change in viewpoint is important for creating a strong and lasting business environment.

Important Takeaways from the Global Fintech Fest Session

Madhabi Puri Buch’s keynote address at the Global Fintech Fest in Mumbai highlighted key strategies for Indian businesses to navigate the changing landscape of compliance regulations. She emphasized merging compliance practices with technological advancements to enhance operational efficiency, especially within the rapidly growing fintech industry. Buch’s insights shed light on SEBI’s pivotal role in shaping forward-looking regulations that promote innovation while upholding strict corporate governance principles. These initiatives, including the recent regulations for Small and Medium Real Estate Investment Trusts (REITs), are instrumental in fostering a resilient and transparent financial ecosystem in India, setting a solid foundation for sustainable growth and development in the sector. The session at the Global Fintech Festival also provided valuable takeaways on the role of fintech in easing the process of doing business and taming high volumes, showcasing the potential for growth and collaboration in the global fintech market.

Emphasizing the seamless integration of compliance

Buch spoke at the Global Fintech Fest about how SEBI is making rules easier for businesses to follow. She said that adding compliance to daily business work is something we can do, not just something we want.

SEBI is taking real steps to help this happen. They use technology to make their processes faster to get approvals. By talking with businesses, especially in the fast-changing fintech sector, SEBI wants to create a place where following rules helps businesses, not stops them.

This way of thinking is important for keeping new ideas coming and staying competitive in a business world that changes quickly.

The role of leadership in fostering a culture of compliance

The SEBI chairperson highlighted how important leadership is in building a strong culture of compliance in companies. She said that leaders must show compliance values and weave them into the company’s values for this to be successful.

When leaders focus on being ethical, it inspires everyone in the company. This approach creates a shared duty to maintain compliance standards. It goes beyond just following rules; it builds a culture of trust and accountability at every level.

In the end, good leadership is key. It changes compliance from being seen as a burden to becoming an important part of a company’s image and its long-term success.

The Impact of Continuous Compliance on Corporate India

Buch’s idea of continuous compliance is important for Corporate India. It shows a shift toward more transparency, responsibility, and honest business practices. This change can make India more appealing to global investors. By making compliance a core part of their operations, companies can reduce risks and lower the chances of facing legal issues. This also helps protect their reputation.

A strong culture of compliance builds trust with stakeholders, which is key in today’s connected world. As India aims to be a strong player in the global economy, adopting continuous compliance will be important for businesses to succeed in a responsible, lasting way.

Challenges in maintaining continuous compliance

The benefits of following rules all the time are clear. However, putting this into practice is tough for companies in India. The rules are always changing, and global business makes it complicated. This means companies need to adapt quickly and spend money on strong compliance systems.

Also, building a culture of following rules across different parts of a company in various locations demands ongoing work and active steps to handle new risks. To meet these challenges, businesses should invest in technology, training, and strong internal controls. This will help keep compliance as a top priority.

Being proactive is key to managing the tricky business landscape. It will help create a strong and lasting corporate environment.

In a world where following rules is important, Madhabi Puri Buch believes in making compliance an ongoing part of business. She sees compliance as a “low hum” that supports success. Leadership is key to building a culture that follows these rules, and this has a big effect on Corporate India. Many examples show how successful companies have made compliance part of their daily work, but there are still challenges to overcome. Focusing on continuous compliance means more than just following regulations. It means making it a natural part of the organization’s daily life for lasting success. As companies work in this environment, the soft and steady pulse of compliance is vital for growth and long-term stability.

Arnifi is committed to making compliance a seamless, unobtrusive part of your business setup. Our expert team guides you through the complexities of legal and regulatory requirements, ensuring that compliance is fully integrated into your operations without disrupting your focus on growth. From obtaining licenses to managing ongoing reporting, Arnifi ensures that your business runs smoothly and confidently within the bounds of all regulations.

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