SEBI Chairman wants credible self-regulation to develop.
Mumbai: SEBI Chairman C B Bhave on Friday called for development of credible self-regulation by participants in the securities markets.
He, however, admitted that it is a difficult task as self-regulation by the participants themselves can result in serving self-interest. He also said the incentives for self-regulatory authorities were not enough, while dwelling on the challenges in the regulatory environment.
Bhave’s comments on self-regulation were part of the 41st A D Shroff Annual Public Lecture he delivered at the Indian Merchants’ Chamber.
Bhave had at a mutual fund summit organised by CII earlier in the year, urged AMFI to convert itself into a self-regulatory body from just being an industry association.
For AMFI to become a self-regulatory body, its constitution needs to be changed to give greater representation to independent professionals on its board. Currently, CEOs of mutual funds are members of the AMFI board. At this stage, transforming into a self-regulatory body appears to be a far cry for AMFI.
