New Delhi, Feb. 4 -- The easing of trade and regulatory uncertainty following the India-US trade deal could spur capital formation in the Indian stock market, Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey said on Wednesday.

"Fundamentally, when you have an overhang of a regulatory action, which is removed, and trade frictions removed, any capital formation is always accelerated with the removal of uncertainties," Pandey said at Sebi's inaugural pan-India outreach programme for corporate bonds in Mumbai.

US president Donald Trump said earlier this week that he and Indian prime minister Narendra Modi had agreed on a trade deal between the two countries, under which Washington would lower reciprocal tariffs on I...