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Letters: The role of the regulator

Sebi, since inception, has enjoyed autonomy with little interference of Ministry of Finance

Business Standard 

With reference to Jaimini Bhagwati’s article “Integrity and Indian Capital Markets” (April 20), Sebi’s role in tightening the screws on insider associated with operations has received criticism. The arguments questioning the integrity of the regulator can generate considerable amount of attention and debate.

First, the Sebi, since inception, has enjoyed autonomy with little interference of Ministry of Finance to oversee and monitor the development of the capital markets. It is a professional-run entity with adequate expertise in product development, surveillance and risk management. This is evident from past committee reports and recommendations on development and Sebi’s adoption capacity to maintain transparency. 

Second, Sebi’s bandwidth in monitoring both capital and commodity derivative markets deserves a mention. The regulatory convergence flagged off in 2015 had allowed the Forward Markets Commission, the then regulator of commodity derivative market, merge with the capital This one-off event is expected to enhance and broad-base participation and bring more liquidity in the market with a unified broker code of market operation.

Third, rogue traders are omnipresent in every market and that cannot vitiate the sanctity of the regulator. While the prevention of fraudulent practices has already been put in place in India similar to the United States or the United Kingdom, demutualised exchanges should be responsible for maintaining an arm’s length relationship with brokers or members and prevent any untoward event such as market cornering or insider or can take corrective measures as and when necessary. 

Kushankur Dey | Bhubaneswar


can be mailed, faxed or e-mailed to: 
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg 
New Delhi 110 002 
Fax: (011) 23720201  ·  E-mail: letters@bsmail.in
All must have a postal address and telephone number

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Letters: The role of the regulator

Sebi, since inception, has enjoyed autonomy with little interference of Ministry of Finance

Sebi, since inception, has enjoyed autonomy with little interference of Ministry of Finance
With reference to Jaimini Bhagwati’s article “Integrity and Indian Capital Markets” (April 20), Sebi’s role in tightening the screws on insider associated with operations has received criticism. The arguments questioning the integrity of the regulator can generate considerable amount of attention and debate.

First, the Sebi, since inception, has enjoyed autonomy with little interference of Ministry of Finance to oversee and monitor the development of the capital markets. It is a professional-run entity with adequate expertise in product development, surveillance and risk management. This is evident from past committee reports and recommendations on development and Sebi’s adoption capacity to maintain transparency. 

Second, Sebi’s bandwidth in monitoring both capital and commodity derivative markets deserves a mention. The regulatory convergence flagged off in 2015 had allowed the Forward Markets Commission, the then regulator of commodity derivative market, merge with the capital This one-off event is expected to enhance and broad-base participation and bring more liquidity in the market with a unified broker code of market operation.

Third, rogue traders are omnipresent in every market and that cannot vitiate the sanctity of the regulator. While the prevention of fraudulent practices has already been put in place in India similar to the United States or the United Kingdom, demutualised exchanges should be responsible for maintaining an arm’s length relationship with brokers or members and prevent any untoward event such as market cornering or insider or can take corrective measures as and when necessary. 

Kushankur Dey | Bhubaneswar


can be mailed, faxed or e-mailed to: 
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg 
New Delhi 110 002 
Fax: (011) 23720201  ·  E-mail: letters@bsmail.in
All must have a postal address and telephone number
image
Business Standard
177 22

Letters: The role of the regulator

Sebi, since inception, has enjoyed autonomy with little interference of Ministry of Finance

With reference to Jaimini Bhagwati’s article “Integrity and Indian Capital Markets” (April 20), Sebi’s role in tightening the screws on insider associated with operations has received criticism. The arguments questioning the integrity of the regulator can generate considerable amount of attention and debate.

First, the Sebi, since inception, has enjoyed autonomy with little interference of Ministry of Finance to oversee and monitor the development of the capital markets. It is a professional-run entity with adequate expertise in product development, surveillance and risk management. This is evident from past committee reports and recommendations on development and Sebi’s adoption capacity to maintain transparency. 

Second, Sebi’s bandwidth in monitoring both capital and commodity derivative markets deserves a mention. The regulatory convergence flagged off in 2015 had allowed the Forward Markets Commission, the then regulator of commodity derivative market, merge with the capital This one-off event is expected to enhance and broad-base participation and bring more liquidity in the market with a unified broker code of market operation.

Third, rogue traders are omnipresent in every market and that cannot vitiate the sanctity of the regulator. While the prevention of fraudulent practices has already been put in place in India similar to the United States or the United Kingdom, demutualised exchanges should be responsible for maintaining an arm’s length relationship with brokers or members and prevent any untoward event such as market cornering or insider or can take corrective measures as and when necessary. 

Kushankur Dey | Bhubaneswar


can be mailed, faxed or e-mailed to: 
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg 
New Delhi 110 002 
Fax: (011) 23720201  ·  E-mail: letters@bsmail.in
All must have a postal address and telephone number

image
Business Standard
177 22