Sebi forms panel to study fintech impact on securities market
Mumbai: The Securities and Exchange Board of India (Sebi) on Wednesday formed a 10-member committee on financial and regulatory technologies, headed by Manipal Global Education chairman T.V. Mohandas Pai.
The panel will examine ongoing and medium-term trends related to fintech in the securities market worldwide and advise the markets regulator on opportunities and challenges from new solutions and its impact on the country’s securities market, Sebi said in a note.
The committee includes Prakash Baliarsingh, chief general manager of RBI; A.P. Hota, managing director and CEO of National Payments Corp. of India; Diana Layfield, vice president, product management of Google, London; Vijay Shekhar Sharma, founder and CEO of Paytm; and Anup Bagchi, executive director at ICICI Bank, (among others.
Sebi said the panel will recommend to the regulator the utilization of fintech solutions for further widening and deepening of the Indian securities market. For this, the committee has to advise Sebi on better usage of existing financing platforms, both traditional and alternative (e.g. peer to peer lending and equity crowd-funding).
The panel will also advise Sebi on how to enhance market access and improve mobilization of household savings through new delivery channels of financial products, Robo Finance, investment advisory and portfolio management services.
Sebi will take the panel’s advice on ways to deepen the market through automated trading systems, dark pools and any other such systems including those driven by algorithms. Also, the panel has to suggest to Sebi ways to reduce the overall cost of transactions and enhance the ease of doing business through new fintech to make Indian markets globally more competitive, Sebi said in the note.
The committee will also recommend the approach the regulator should take and the regulatory framework suitable for Indian market conditions to facilitate adoption of fintech and promote financial innovations.
The objective of the panel will be to prepare the country’s securities market for adopting new fintech solutions, so that Sebi is able to promote the market integrity, develop the market, protect consumers, support business models, market disruptions and manage changes.
Also, the panel is mandated with the duty to assess technological solutions for regulatory functions by Sebi.
Additionally, the committee will help Sebi in creation of cyber security standards for the securities market and a technology risk management framework for market participants, said the Sebi note.