Sebi sets up intermediary advisory panel to be led by former ED S Ravindran

The committee will advise the regulator on legal framework, transparency, and market safety-related matters

The Securities and Exchange Board of India (Sebi) has constituted an Intermediary Advisory Committee to advise the markets regulator on changes in legal framework and increasing transparency in the functioning of market intermediaries like stock exchanges, depository participants, clearing corporations, among others.

The committee will be chaired by former Sebi executive director S Ravindran who in his assignment with the markets regulator handled the charge of Corporation Finance Department. He had also headed departments related to investment management, and foreign institutional investors and custodians.

Along with Ashish Chauhan and Sundararaman Ramamurthy, the managing director and chief executive officer of National Stock Exchange (NSE) and BSE, respectively, the committee has representation from the broking community, legal, and financial institutions.

 

The market regulator has noted that the committee’s role will be to advise on enhanced adoption of technology and cyber security by intermediaries, including in respect of compliances, to suggest measures for improving market safety, efficiency, transparency and integrity, and to advise on simplification and transparency in systems and procedures.

Commitment for better times

• Committee’s role will be to advise on enhanced adoption of technology and cyber security
• The regulator follows a recommendation process with the committees formed for specific segments
• Sebi has upped its inspections on market intermediaries in recent times
• The 21-member committee has representation from the broking community, legal, and financial institutions

The committee of 21 members includes representatives from the industry like Vijay Mehta, president of brokers’ body Association Of National Exchanges Members Of India (ANMI), Nithin Kamath, CEO – Zerodha Broking, Lalit Keshre, CEO of Groww, Aditya Bagree, MD – Citigroup, Lalit Mundra- chairman of Bombay Brokers Forum, Vivek Rege, chairman - Association of Registered Investment Advisers (ARIA), Sunil Alvares, MD & CEO, CDSL Ventures, Narinder Wadhwa, president - Commodity Participants Association of India (CPAI), among others.

The markets regulator follows a recommendation process with the committees formed for specific segments before introducing the proposals for stakeholder comments through a consultation process.

Over the last year, there have been significant frameworks and reforms introduced for the market intermediaries like stock brokers, depository participants, clearing members, non-mutual fund Registrar and Transfer Agents (RTAs), Investments Advisors (IAs), Research Analysts (RAs), and KYC Registration Agency (KRAs).

Sebi has, over the last few months, upped its inspections on market intermediaries, given additional responsibilities for surveillance of client action, and even unauthenticated news circulation.

Finfluencer PR Sundar settles matter with Sebi

In a matter related to unregistered investment advisory, financial influencer PR Sundar and his firm Mansun Consultancy and co-promoter have settled the matter with the Securities and Exchange Board of India (Sebi) for a total of Rs 46.8 lakhs and a disgorgement of over Rs 6.07 crore along with an interest payment on the amount.

In a settlement order by Sebi issued on May 25, the three entities have agreed to not deal in securities for one year. The disgorgement amount includes the profit earned from the advisory business. With the settlement order, the show cause notice issued against the three have been disposed.