Mumbai, Jan 15 || India’s market regulator, the Securities and Exchange Board of India (SEBI), is considering whether it should start regulating the country’s unlisted share market, which currently operates largely outside its direct control, chairperson Tuhin Kanta Pandey said on Thursday.
Speaking on the sidelines of the Association of Investment Bankers of India’s annual convention for 2025–26 here, Pandey said the issue is being discussed with the Ministry of Corporate Affairs.
“SEBI first needs to examine whether it has the legal authority to regulate companies that are not listed on stock exchanges and how far such regulation can extend,” he explained.
The unlisted share market includes shares of companies that are not traded on stock exchanges.
Investors usually buy these shares through private deals, employee stock option plans or intermediaries.
Since these companies are not listed, they are not required to follow strict and continuous disclosure rules, which often leaves investors with limited or delayed information about a company’s financial health and business risks.