Buoyed by its newly bestowed teething powers, the Securities and Exchange Board of India is now set to reinvent itself in a fresh avatar starting from its next board meeting to be held on August 12.

The top agenda of the meeting is tipped to be the discussion and approval of the report by international consultancy major Oliver Wyman roped in by the market watchdog last year to suggest ways and means to make SEBI more structurally responsive to the needs of the market and redefine its role in the Indian financial sector.

One of the key suggestions made by it for an overhaul of SEBI’s functions, role, structure and vision includes considering a ‘triple-A approach’ of spreading awareness among investors, promoting appropriate products and ensuring proper audit of the marketplace.

According to reports, the proposals, which have been made after extensive consultations with top officials from SEBI, Finance Ministry, RBI, IRDA and large market intermediaries, will take the final shape after incorporating the suggestions made by the SEBI board.

Oliver Wyman suggested eight goals for SEBI over the next five years with the top priority on increasing mobilisation of household savings into capital markets and empowering small investors. The other goals identified are building a diversified and balanced investor base and developing viable alternatives to bank credit, enhancing ability to prevent and respond to crises, empowerment of investors and ensuring full trust and confidence of investors in the securities market.

It has been suggested that SEBI should pursue the Government and other regulators to address the regulatory gaps in the existing set-up with proposals such as consolidated supervision of all types of investment schemes through a single body.

manisha.jha@thehindu.co.in

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