New Delhi: Seeking to rein in the growing crop of investment advisers dishing out “hot” market tips through various media, including SMS, the Securities and Exchange Board of India (Sebi) has turned to its US counterpart—the Securities and Exchange Commission(SEC)—for some advice.
An SEC team was in Mumbai late March to conduct a four-day training programme on “Investment Company Regulation, Examination and Enforcement.” It was attended by more than 60 officials from Sebi, as well as securities exchanges and depositories.
This was SEC’s first-ever foreign regulator training programme focused on regulating and examining investment firms and investment advisers.
Sebi chairman M Damodaran said after the training programme that the Indian regulator was looking “forward to benefiting from the considerable experience and expertise that SEC has gained over the years—especially in matters related to regulatory oversight, monitoring and examining of investment advisers and companies,” an SEC statement said. In the past 18 months, SEC has provided training to over 300 officials in India, the US regulator said.
Sebi has also proposed to set up a private sector regulatory organization. The regulator is inviting the public’s suggestions and comments on regulation of investment advisers and companies till the end of April.