The chief of India’s markets regulator emphasizes the need for instant settlements to stay competitive with cryptocurrency

SEBI’s Madhabi Puri Buch stated that if traditional markets fail to provide tokenization and immediate settlement, investors might transition to crypto.

The head of India’s securities watchdog cautioned that without instant settlements, investors could migrate to alternative spaces like crypto.

Settlement, the final step in payments and securities trade, is crucial for market operations.

Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (SEBI), revealed plans to introduce quicker settlements on Monday. India aims to implement a same-day settlement cycle from March 28 on an opt-in basis, following China’s lead, while most other nations settle within two days, as reported locally.

Buch expressed concern that if India’s regulated market cannot keep pace with crypto’s tokenization and immediate settlement offerings, investors may shift their focus. She stressed the importance of India leading in instant settlement speed, cautioning that a significant portion of the market might migrate to crypto. Reports also mention foreign portfolio investors expressing frustration with the complexities of complying with faster settlement cycles.

The broader strategy includes adopting instant settlement by March 2025, pending approval from the market regulator’s board, scheduled to convene on Friday.

“Instant everything” is increasingly in demand, Buch noted, highlighting the potential consequences if traditional markets fail to provide what the market desires.

Bitcoin surged to an all-time high, surpassing $73,000 on Wednesday.

SEBI’s stance on crypto in India has been somewhat distant historically.

Initially expected to regulate crypto, SEBI appears to have taken a backseat. The regulator falls under the administrative purview of the finance ministry, which has been active in shaping global consensus on crypto regulation through forums like the Group of 20.

While the Reserve Bank of India remains critical of crypto, promoting its central bank digital currencies, SEBI’s role in the crypto landscape has been relatively passive.