Rising market-economy disconnect has no precedence, poses risk: Sebi chief

Market regulator is in active talks with stakeholders to bring in greater granularity in disclosures by listed firms in ESG (environmental, social and corporate governance)

Sebi chairman Ajay Tyagi said on Thursday that the increasing disconnect between the financial markets and the real economy being witnessed today has no precedence and concurred with other regulators that it poses a risk to the systemic stability.

“Typically, stock markets have been barometers of the economy and move in the direction the economy moves or is expected to move. However, after the onset of the pandemic, several institutions including Financial Stability Board and the RBI have raised concerns of an increasing disconnect of the financial markets with the real economy and a possible risk it may pose to