Securities and Exchange Board of India (Sebi) chairman UK Sinha on Tuesday said the market regulator is planning to strengthen its accountability by undergoing a performance audit.
“The independent board members will evaluate Sebi’s performance and the whole-time members will offer assistance to them,” Sinha said, addressing the annual capital market summit by Federation of Indian Chambers of Commerce and Industry (Ficci). Sinha said Sebi will not ask the market to do anything which it itself does not follow.
The Sebi chairman further said Sebi would like to have a woman board member like other listed companies. At present, the Sebi board has four part-time members along with the chairman and two whole-time members.
On primary markets, Sinha said Sebi is working on cutting down the time taken for the listing of companies on stock exchanges from six days to four days.
“We have been able to bring down the issue timing from T+12 to T+6 days and I would like to say that all of us have to start working now about how to further reduce the issue timing,” he said.
Sinha said the primary market after several years is performing well and the number of retail investors has crossed one million in two out of the 15 (IPO) issues during the calendar year (CY) 2016. “This shows how much appetite people have to invest in the markets if we can bring in an issue with reasonable and affordable price,” Sinha said. Regarding algorithmic trading norms, Sinha said Sebi will take a final view after seeking the advice of experts.
Further, Sinha said Sebi is planning to introduce more products and participants in the commodity derivatives segment. Last week, the Sebi had allowed commodity exchanges to introduce trading in options.
Sinha also spoke of cleaning up the ‘historical baggage’ in Indian markets and said action will be taken against promoters of companies whose stocks have been suspended from trading for years if they do not give minority shareholders an exit option at a fair price.