Don't tread on Sebi

The market regulator needs financial autonomy

The Securities and Exchange Board of India (Sebi) has asked the finance ministry to reconsider aspects of the Union Budget for 2019-20 that seek to amend its governing legislation, the SEBI Act of 1992. The Finance Bill has made some major changes to requirements on the market regulator. For example, the proposed amendments suggest that three quarters of the surplus retained by the market regulator every year be handed over to the government. The remainder should go into a “reserve fund” — but that, too will be capped. The level set by the government is two years’ expenditure. This is