SEBI seeks to create atmosphere of trust in stock market

India Infoline News Service | Mumbai |

The regulator is working towards a “stricter and prompter enforcement” regime using the latest technology and strengthen insider trading norms

Market regulator SEBI (Securities and Exchange Board of India) plans to create an atmosphere of trust in the market, confidence in the investor and efficiency in the system.

The regulator is working towards a “stricter and prompter enforcement” regime using the latest technology and strengthen insider trading norms, according to SEBI's annual report for 2012-13.

An area of concern for SEBI is the lack of involvement by retail partipants as “more of domestic savings have been channelised into physical assets of late and financial savings have undergone a marked decline.”

SEBI said it would continue to take measures to enhance retail participation in the capital market.

SEBI has already introduced anchor investors in initial public offerings (IPOs) and prohibited non-retail investors from withdrawing or lowering bid sizes as part of steps to attract individual investors.

It said insider trading regulations would be updated to bring them in line with global best practices.

“The extant regulatory regime on insider trading would be reviewed and realigned with the best practices adopted globally under the supervision of a high-level committee,” SEBI added.

It said amendments to insider trading regulations to fortify the framework that protects a fair marketplace are also in progress.

Besides, SEBI has set up a 16-member committee to suggest new rules on insider trading, which would replace the almost two-decade old set of norms.

The committee will examine practices followed in other parts of the world and would submit its recommendations on insider trading by next year.

“It is also crucial to promote fair practices that align with the best in class through stronger enforcement measures and in harmony with the technological developments worldwide,” SEBI said.


 

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