BackSebi plans to add more teeth to its governance, says UK Sinha
Sebi plans to boost its image as a regulator by undergoing an additional audit, instating female members on the board and taking other measures
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Mumbai: U.K. Sinha, chairman, Securities and Exchange Board of India (Sebi), on Tuesday said Sebi plans to strengthen its own accountability as a regulator by undergoing an additional audit, instating female members on the board and taking other measures.
“In the recent board meeting it was decided that independent board members will evaluate Sebi’s performance. The whole time members will only cooperate and offer assistance while doing it," Sinha said, while addressing the annual capital market summit by lobby group Ficci (Federation of Indian Chambers of Commerce and Industry.
Sinha said that he will not ask the market to do something that the regulator itself is not willing to do. It is on this thought that the plan to improve the regulator’s governance standards has been drawn.
Currently, as per the Sebi Act, there should be three whole-time members and three part-time board members.
However, there is no female board member at Sebi. Sinha said that Sebi is willing to fill this gap as well. Sebi has asked the finance ministry to appoint a female board member.
According to the listing agreement norms and the companies Act, having a female board member is mandatory for companies.
At present, additional performance audits of regulators are not common.
Apart from regular board meetings, independent board members of Sebi will meet separately to discuss issues pertinent to the performance of the regulator, Sinha said.
However, Sinha didn’t specify when these meetings will start.
Separately, Sinha said the regulator is working on introducing new products and market participants in the commodities market. Sebi recently allowed options contracts for trading on commodities derivatives exchanges.
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