SEBI board to announce key policies at its meet on Tuesday

PALAK SHAH Mumbai | Updated on September 17, 2018 Published on September 17, 2018

Likely to take a call on panel report on fair market conduct, settlement mechanism

SEBI’s board meeting on Tuesday could be among the most important ones ahead of the 2019 general elections wherein the capital market regulator is likely to take a host of high-profile decisions, including committee report on fair market conduct, report on settlement mechanism, inter-operability of clearing corporation, status report on NSEL enforcement action and cutting down of listing time of IPOs to just three days, source told BusinessLine.

According to experts tracking SEBI, it is rare to see the regulator rushing to take up two key committee reports in a single board meet and also implement it immediately.

SEBI will also take up the matter related to internal promotions of its officials, other human resource issues and concerns of SEBI employee association for discussion on Tuesday, the source said.

SEBI may decide not to keep any of the key policy decisions it wants to take, pending beyond September or October or take them closer to general elections early next year, the source said. SEBI has even advanced the date of its board meeting to September 18 from 27 and is likely to implement decisions taken in the meet from October, the source added.

Implementation of the fair market report may kick-up a storm as the committee has recommended entry barriers for retail investors. It is proposed that retail players be allowed to trade in markets based on their net worth.

SEBI’s viewpoint of looking at serious capital market violations such as front-running and insider-trading may undergo a sea change for the purpose of settlement once the regulator implements the Dave panel recommendations.

The Dave committee has recommended that SEBI follow a single criterion for settlement of cases instead of leaving out a few violations such as insider-trading and fraudulent trade practices. The idea is to follow the principle of market-wide losses to a large number of investors which affect the integrity of the market, for settling cases. This may have implications on pending cases involving corporate houses.

In 2018, SEBI came up with nearly 17 consultation and discussion papers combined together for framing or changing existing policies, compared to just eight in 2017. This year so far, SEBI has received four key committee reports, of which recommendations of two have already been implemented. The report on corporate governance came in October 2017 but was implemented in 2018.

Published on September 17, 2018
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