SEBI to embark on transparency drive

PTI New Delhi | Updated on May 24, 2011

Market regulator SEBI has decided to embark on a transparency drive with an aim to make its functions as transparent as possible.

As part of the proposed move, SEBI will make public all the prosecution cases undertaken so far in the interest of the markets and investors and might consider revealing even some of its ongoing probes, depending on their sensibility.

The proposed moves, which also include appointment of a Chief Information Officer, are being seen as part of a new operating environment being ushered in by Mr U K Sinha, who succeeded Mr C B Bhave as SEBI Chairman in February this year.

In the past, SEBI has faced the flak for being surrounded in a veil of secrecy, which has been often defended in the name of possible misuse of the information by vested parties.

SEBI generally does not make public its ongoing probes on the ground that the investigations could be jeopardised by interest parties.

However, regulators in the US and some other countries generally issue a public statement even at the time of launch of their investigations.

Besides, SEBI has also decided to appoint a CIO for maintenance and dissemination of all information from it.

The regulator has been told by its board of directors, which includes nominees from the central government, that it needs to appoint a CIO for proper information dissemination.

The board also suggested SEBI to develop a strategic action plan for a period of 3-5 years as against the current practice of such plans being framed for one financial year.

Published on May 24, 2011

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