Mumbai, Nov 29 : Calling for the need for introspection and developing business plans that help larger participation, SEBI chairman U K Sinha asserted that India definitely has an opportunity to figure as a favoured financial destination.
Addressing the Confederation of Indian Industry's (CII) third Capital Markets Summit, he also mandated the market players to innovate products with a social purpose taking into account the customer needs.
Mr Sinha informed that Securities and Exchange Board of India has enhanced its surveillance capability and has also introduced mechanism to examine its organizational structure to strengthen investor trust.
He observed that in the recent past, certain risky products were introduced in the markets across the globe and these products failed between regulators. Hence, a clear regulatory mechanisms need to be devised, he said.
He opined that communication between customer and intermediaries needs to be clear and suggested to adopt 'compliance culture' to enhance the trust. Besides, the products introduced should serve social purposes and needs of the country, rather that just being innovative so that retail participation is facilitated.
Mr Sinha opined that efforts could also be taken to channelize savings of pension and provident funds to capital markets and assured that SEBI would support such initiatives.
He assured that SEBI would definitely protect investor interests and strive to develop and regulate the markets. In this context, he informed that SEBI has taken steps to have a complete review of the IPO process. He also underlined the importance of know your customer (KYC) as a crucial national and international requirement and informed that SEBI regulations in this regard are drafted.
He informed that SEBI risk management system has stood the test of time and urged the market players to take risk management seriously while keeping abreast of trends in technology adoption and high frequency trading.
Mr Sinha also informed the audience about the recent SEBI regulations on Alternate Investments and on Financial Advisors as major steps to protect the interest of domestic investors.
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