Strengthening Investor Confidence: Sebi’s Role in Market Stability

Sebi must draft regulations that prevent disputes and challenges at the Securities Appellate Tribunal, says V Sundaresan, an Executive Director. He emphasizes trust and impartiality in markets, citing growth in mutual funds. Kotak's Nilesh Shah advocates for honed talent and stronger law enforcement.

A senior official emphasized the need for Sebi to draft regulations that minimize disputes and challenges at the Securities Appellate Tribunal, urging the regulator to act as an impartial umpire. Speaking at the World Hindus Economic Forum, V Sundaresan highlighted Sebi's role in capital formation and maintaining investor trust.

Addressing concerns about Sebi's decisions being overturned, Sundaresan likened the regulatory process to the responsibility of a fair umpire in sports. He stressed the importance of stability and systematic market development, comparing it to avoiding poor city infrastructure management.

Kotak AMC's Nilesh Shah, echoing similar sentiments, pointed out the disparity in mutual fund investment versus cryptocurrency. He called for efforts to retain skilled talent and the enhancement of legal mechanisms, proposing that Sebi be granted phone tapping powers to combat financial fraud.

(With inputs from agencies.)