Being in the stock-market, I know how common it is to curse the SEBI. We jokingly say unlike in other regulators like IRDA (Insurance Regulatory and Development Authority) and PFRDA Pension Fund Regulatory and Development Authority) there is nothing like DEVELOPMENT in SEBI. SEBI only knows how to sabotage the business of intermediaries (like stock brokers, AMCs etc).
SEBI was entrusted by parliament with the responsibility to perform executive, legislative and quasi-judicial functions; but without commensurate power.
In its earlier days, SEBI was known for its lapses, especially its inability to control the scams in stock market, prevent the manipulations in IPO and address investors’ grievances.
SEBI didn’t have its own manpower nor the experience. It had to learn on its own, e.g. screen-based trading was introduced without SEBI having required technical tools and expertise to supervise it.
Nobody had respect for SEBI. The corporate India didn’t like it, the brokers hated it and other intermediaries accepted it only grudgingly. The interference of government was heavy and the oppositions from the people with vested interest was strong.
Thus, the journey of SEBI has never been smooth. However, in spite of the struggle and fighting for its existence, what SEBI has achieved is commendable.
It is heartening to see the reforms it has brought in Mutual Funds, in the primary market, in administration of stock exchanges, in surveillance and introduction of new regulations for FPI, AIFs, REiTs, InvITs.
Today, SEBI is one of the most powerful regulators in the world. Its voice and views are respected in the global body of regulators. The world bank and the IMF acknowledge SEBI for implementing the best reforms.
Leadership plays a pivotal role in the success of any institution. Mr. UK Sinha and the current Chief, Ms. Madhabi Puri Buch, represent a continuum of effective leadership. Mr. Sinha, with a background in IAS, brought administrative insight, while Ms. Buch, with a strong academic background and her brokerage experience, has firsthand access and understanding of the real issues.
Intention, Intellect, intensity and integrity are the traits of these leaders that are at the core of such institutions.
What I realised is, SEBI does have a development mind-set. It is no exaggeration to say that the vibrancy and progress the Indian capital market has achieved is because of systematic and steadfast efforts of SEBI.
We totally agree with the SEBI Chief that today, the other new generation fellow regulators look upon SEBI as a model they would like to follow.
