The head of India’s securities regulator has issued a caution, suggesting that if traditional markets don’t adapt to provide swift transaction settlements, investors might flock to alternative spaces like cryptocurrency. Settlement refers to the finalization of payments and trades in financial transactions.
Madhabi Puri Buch, who chairs the Securities and Exchange Board of India (SEBI), has outlined plans to introduce faster settlement procedures starting March 28.
India aims to offer a same-day settlement option, making it the second country after China to do so, while other nations typically take two days for settlement.
“If our well-regulated market cannot compete with the crypto world and cannot say we also offer you tokenization and instantaneous settlement over the medium term, I won’t even say long term, you should expect investors to move,” Buch said.
Buch emphasized the importance of keeping pace with the evolving financial landscape, warning that failing to offer features like instant settlement and tokenization could drive investors toward crypto markets.
SEBI is also considering adopting instant settlement by March 2025, pending approval from its regulatory board. Buch highlighted the growing demand for instant transactions, noting that if regulated markets don’t provide such options, investors may seek them elsewhere.
Meanwhile, Bitcoin’s value has surged, hitting an all-time high above $73,000. SEBI’s involvement in regulating cryptocurrencies in India has been limited, with the responsibility largely falling on the nation’s finance ministry.
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