It hurts when people calls us activists: Sebi chief

Tags: News
Unfazed by criticism that the market regulator acts like 'activist' working against business interests, Sebi Chairman U K Sinha today said it will continue to take steps to build investors' trust which has been hit hard often by manipulationand fraud.

"We take each of our decisions after active consultations (with public and other stakeholders), and take measures after that. But, it hurts when you people call us activists (working) to affect your business," Sinha said here.

Addressing the annual International Convention of ANMI (Association of National Exchanges Members of India), the Sebi chief said the measures that Sebi takes for risk management or investor protection should not be seen as a burden by the entities concerned.

"Whether you like it or not, we have to respond to the needs of the society and we have to be guided in long term growth. So, don't think, we are trying to be activist, as what we are trying to do is to generate a long-term trust in the Indian market," he said.

Sinha noted that developing investor trust and certainty with regard to law and legal position were among the key factors to sustain growth in the country.

However, the Sebi chairman said that the recent scams and misconduct in the market has eroded investors trust.

He also observed that investors have been losing money as more than two-thirds of the companies that hit the capital market are trading below their issue prices.

Sinha said Sebi has taken several steps with respect to requirements and protection of investors.

These measures include e-IPO, call auction on the opening day of an IPO, disclosure requirements, expansion of investor grievance redressal mechanism, certain obligations on merchant bankers, and simplified advertisement code as well as product labelling for mutual funds.

"Some people may find it very irritating that why Sebi is getting into, for example, labelling of products, but we want sustainable growth in the market and to generate trust in the market," Sinha said.

According to him, these measure have had positive impact in the capital markets.

On enforcement actions, Sinha said regulators across the world "are realising that passing a penalty order against the company is been taken as extra cost of doing business so now more and more penalty is been passed against individuals", and Sebi has been following the same example.

He said: "Last five years, it has been proved within India and outside India that it is no longer situation where it is business as usual. People are becoming more demanding and more aware and their requirements have to be taken into account."


  • Long-term health cover makes good sense for both the insurer and the insured

    Long-term health insurance products make enormous sense.


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Urs Schoettli

America lacks will to contain China

Recently both the Chinese leader Xi Jinping and Indian prime ...

Zehra Naqvi

Exercise gets creative juices flowing

Ever known that feeling of being sluggish and drowsy, of ...

Bubbles Sabharwal

You are what you believe yourself to be

The Gita says a man is what his shraddha is. ...


William D. Green

Chairman & CEO, Accenture