Sebi for pension funds, PF into capital markets

Chairman U K Sinha called for a need to introspect and develop business plans that help larger participation saying: India definitely has an opportunity to figure as a favoured financial destination given we introspect and improvise.

Addressing the 3rd Capital Market Summit, organised by Confederation of Indian Industry (CII), here, he exhorted market players to innovate products with a social purpose taking into account customer needs.

Sebi has enhanced its surveillance capability and also introduced mechanism to examine its organizational structure to strengthen investor trust, he said. He observed that certain risky products introduced in the markets across the globe and they failed between regulators.

Hence, a clear regulatory mechanisms need to be devised, said he adding that communication between customer and intermediaries needs to be clear and there is a need to adopt “compliance culture” to enhance the trust.

He said the products introduced should serve social purposes and needs of the country rather that just being innovative so that retail participation is facilitated. Sebi will further strengthen the system and improve compliance.

He assured that Sebi would definitely protect investor interests and strive to develop and regulate the markets. Underlining the importance of KYC as a crucial national and international requirement, he informed that Sebi regulations in this regard are drafted.

The Sebi is also going for a complete overhaul of the primary market norms and review the entire IPO process for which it has set up a group. The idea is to make fund raising by corporate India more efficient both by way of time and by way of costs. At the same time, let me also alert you that in the process there will be some additional obligations on the intermediaries, he said.