Letters: Sebi, warts and all

This refers to the editorial “Frustrations boil over” (July 26). The point made in the editorial that it is better to avoid confrontation than resolve conflict has a universal appeal. The three conflicts cited in the edit have more to do with personality traits than anything else. The moot point is: Why does a single regulator have so many problems in so many sectors and with regulated entities? Is it that C B Bhave and his team suffer from inflated arrogance and superiority complex of a bygone control era? The edit states that respect is a trait which a regulator must possess. Regrettably, this is lacking in the present case. Bhave joined Sebi at a time when cases against NSDL were pending with Sebi. A committee chaired by Mohan Gopal directed NSDL to conduct internal enquiries and fix individual responsibility for the lapses that allegedly aided the IPO scam. The Sebi board was very kind to Bhave and rejected the Mohan Gopal committee report.

Bhave’s behaviour at times seems foolhardy. Take, for example, the time when he agreed to a status quo in Delhi in the Irda matter and went back to Mumbai and issued an order contrary to the agreed status quo. His constant condescending and high-handed sermonising to the mutual fund industry after having done enough to destroy its distribution networks is another case in point. Non-decision on regulated entities is one more example of his arrogance. As long as his superciliousness drives his policy decisions, one can expect a repeat of such brawls in the capital market.

K Venkatachalam, New Delhi