SEBI Chief’s Agenda: Investor Protection and Enforcement Reforms
Why in the news
A letter to the incoming SEBI head listed priorities, stressing that protecting small investors should come ahead of the regulator’s other goals.
Key facts
- The three objectives in SEBI’s preamble: market development, regulation, investor protection.
- Investor education got just ₹2.8 crore in 2023-24.
- The National Institute of Securities Markets (NISM) was meant to have a School for Investor Education, but now mostly trains SEBI staff and intermediaries.
- The SMARTS programme for training advisers needs momentum.
Suggested priorities
| Issue | Suggestion |
|---|---|
| Advisers | Build a network of trained, ethical advisers, especially in rural areas |
| Adjudication | Adjudicating Officers lack judicial training; consider judicial officers on deputation |
| Enforcement | Probes take years; ensure speed and exemplary punishment |
| Stability | Avoid frequent amendments to insider trading and related party norms |
| Independent directors | Do not keep changing the definition; independence is a state of mind |
Concerns
- Conflict of interest and information asymmetry remain major market risks.
- Some officers reportedly become adjudicators because of weak performance elsewhere.
Exam angle
- Appeals against SEBI orders go to the Securities Appellate Tribunal (SAT).
- Full forms: NISM, SAT, AO.