Sebi to consider Oliver Wyman recommendations today

The international consulting firm has suggested steps to increase confidence building in stock markets and for mobilisation of household savings into capital markets

The Securities and Exchange Board of India (Sebi) will consider on Monday the recommendation by international consulting firm Oliver Wyman on an organisational rejig.

The US-headquartered consulting firm, which has operations in about 25 countries, was appointed by Sebi last year for a performance review and to suggest changes to keep pace with the changing landscape of the securities market.

The firm had suggested a set of goals for the market regulator authority for implementation over five years. It has suggested steps to increase confidence building in stock markets and for mobilisation of household savings into the capital markets. Oliver Wyman has also suggested review of existing investment schemes and to give more powers to small investors.

It has also made recommendations for better coordination between Sebi and other regulators and government agencies. It has suggested better risk management systems to plug the gaps and to bring Sebi at par with global peers.

Other recommendations include an increase in overall personnel, especially in departments such as enforcement and surveillance. The move is expected to help the market regulator to effectively use its new powers, given last month, including the authority to attach properties and recover monetary penalties, to crack down on illegal collective investment schemes and other defaulters.

According to sources, the consulting firm has also asked Sebi to set up more self -regulatory organisations. It has asked Sebi to step up the audit and oversight of listed companies and to have a principle-based approach on fraud.

Last year, Oliver Wyman was selected by Sebi through a tendering process, where 16 global agencies participated, to give shape to organisational restructuring, one of the top priority areas of Sebi chief U K Sinha.

Oliver Wyman, a part of the NYSE-listed Marsh & McLennan group, specialises in strategy, operations, risk management, leadership development and organisational transformation. The firm has about two decades of experience and has provided solutions in these areas to about 100 financial institutions over the world.