REGULATIONS


The market regulator seems unable to break free from the past When UK Sinha took over as chairman of the Securities and Exchange Board of India (SEBI) in February 2011, I wrote, it was an advantage that he came without the baggage of litigation (against SEBI itself) that his predecessor had...

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With faith and with risks mounting for government bonds rising in developed markets, emerging markets countries and corporations were able to issue more debt than ever before. In 2010 Chinese companies raised three times more money from bonds as they did from equities. Now many of these bonds...

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Greece is a democracy with a free press and subject to the restrictions of the EU. China actively suppresses information. To determine the state of the Chinese economy it is sometimes necessary to look outside some of the official reports. Like discovery of the structure of DNA, it is necessary...

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SEBI’s circular on due diligence to be done by large distributors is yet to be taken seriously. Some banks are not even aware of it! Six months after the Securities and Exchange Board of India (SEBI) got a new chairman, the market watchdog issued a new circular that aims to regulate the...

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Interference of ministry or the PM in the selection of the SEBI head is the norm In June 2011, I wrote in this column, “Who will discipline a regulator that fails to discharge its responsibilities?” This was in the context of a strongly-worded letter by Dr G Mohan Gopal, a former member of...

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ML Digital Team 06 October 2011
The RBI (Reserve Bank of India) at its September annual conference of Banking Ombudsmen held in Mumbai has said that it has plans to improve processes to redress consumer grievances. The RBI or the Indian Banks’ Association would examine the issues pertaining to monetary compensation for mental...

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ML Digital Team 06 October 2011
SEBI is planning to regulate the practice of investment advisors who also act as distributors of the products they advise customers to buy. A discussion paper on regulating investment advisors & distributors will be soon put out for public comments. But it is not clear if SEBI’s draft paper will...

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The Everonn case shows how a chairman and directors are not enough to ensure governance among listed companies Even as investors are yet to recover from the shocking saga of Satyam Computer Services Ltd, a company that once formed a part of the Sensex, comes the sordid news of another...

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Moneylife Digital Team 30 September 2011
Our discussions of SEBI’s paper on investment advisors have drawn a tremendous response. Here is the summary of the distributors’ perspective Comments have been pouring in from distributors of financial products- apart from the ones that are already there in our website (Please scroll below...

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Moneylife Digital Team 29 September 2011
The new (flawed) investment advisor regulation is a non-starter since SEBI is proposing to regulate through the idea of Self Regulatory Organisation. SROs have not worked in the past and may fail in this case too The Securities and Exchange Board of India (SEBI) in a concept paper suggests...

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Moneylife Digital Team 28 September 2011
There is nothing stop an “agent” to pass back money to an “advisor”, which makes SEBI’s new idea nonsensical. If the agent and advisor sit side-by-side in two desks of the same bank, so much the worse The Securities and Exchange Board of India (SEBI), in a view to curb mis-selling of...

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Moneylife Digital Team 27 September 2011
If SEBI’s new norms on investment advisors come into force, mutual fund sales will decline even further and mis-selling of insurance products will increase! When UK Sinha took over as the chairman of the Securities and Exchange Board of India (SEBI), small distributors were elated. As the...

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The public is disgusted and angry over rampant corruption. Will politicians listen? All the Congress chickens seem to be coming home to roost, all together. But worse, they seem determined to stop at the prime minister’s (PM) door. Only recently, a former telecom minister (A Raja) and a...

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A good MIS is absolutely necessary for MFIs to manage the interface with clients and conduct activities/processes in a manner that is efficient, effective and transparent Understanding the state of management information systems (MIS) in Indian microfinance institutions (MFIs) is very...

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With wrong people at the helm, distrust and lack of integrity are the norm Consider some recent headlines. Chairmen of two large government insurers—Life Insurance Corporation of India (LIC) and New India Assurance—are under a cloud. The Central Vigilance Commission has issued an order...

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The market watchdog’s pro-investor measures Small shareholders are a harried lot—what with market volatility and complicated procedures making things difficult. However, some decisions taken by SEBI (the Securities and Exchange Board of India) in late July may benefit them. Non-compete...

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Moneylife Digital Team 02 September 2011
Despite repeated persuasion, investors’ complaints filed with the market regulator either remain unheard, or are disposed off with vague replies. Moneylife has had a personal experience of this For some years now, Moneylife has heard from investors and has been writing that the market...

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Moneylife Digital Team 02 September 2011
The ratings agency has welcomed the new recommendations as they better guard firms against potential risks, though additional provisioning could have a short-term impact on profitability  Ratings agency Crisil has said that the recommendations of the RBI-appointed Working Group on...

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Moneylife Digital Team 02 September 2011
As the tussle between KM Abraham and the Securities and Exchange Board of India gets more bizarre, the finance ministry has gone one step further, saying it has received serious complaints against the former member of SEBI of abuse of power and corruption The Abraham-SEBI saga is getting...

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An internal study commissioned by the new SEBI chairman found what Moneylife alone has been saying: total subjectivity in the way whole-time members have been passing consent orders Among the many things that UK Sinha, Chairman of the Securities and Exchange Board of India (SEBI) has thought...

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