Union Finance Minister Arun Jaitley on Saturday credited securities market regulator SEBI for being a professional organisation which has been evolving as per the needs of the economy.
Jaitley’s comments on the evolution of SEBI’s role came after he addressed its Board at a post-Budget meet.
“SEBI is a professional organisation with considerable experience,” Jaitley said adding that it has been evolving as per the needs of the economy and the markets.
According to the minister, during the meet, discussions on various issues relating to the securities markets were held.
Jaitley remarked that the Indian securities markets have witnessed “significant developments” during the last 5-6 years and that technology has heavily influenced its operations.
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According to SEBI, its Chairman U.K. Sinha apprised Finance Minister Jaitley on the recent developments and trends in the Indian securities markets during the last few years.
“It was acknowledged during the discussion that the share of market based finance vis-à-vis bank finance had impressively gone up, particularly during 2015-16 and 2016-17 (till Jan, 2017),” SEBI said in a statement.
The statement pointed out a “tremendous rise” in resource mobilisation by the mutual fund industry during the last few years.
“It was noted that the asset under management (AUM) of the mutual fund industry had substantially gone up almost 2.5 times from Rs 7.01 lakh crore as on March 31, 2013 to Rs. 17.37 lakh crore as on January 31, 2017,” the statement disclosed.
“Similarly net flows to mutual funds have been rising continuously every year since 2013-14 and during 2016-17 (till Jan. 31, 2017).”
SEBI revealed that the mutual fund industry had received net flows of Rs 3.68 lakh crore, which amounts to a massive rise of almost 2.75 times over the net flow figure of Rs 1.34 lakh crore during 2015-16.
The meet concluded with a broad consensus on the need for further development of commodity markets in both the spot and derivatives segments.
“The recent Union Budget proposal to look into integrating the two segments were also highlighted during the discussion,” the statement said.
The meeting was attended by the Minister of State for Finance Arjun Ram Meghwal, Secretary (Finance) Shaktikanta Das, Chief Economic Advisor Arvind Subramanian and SEBI Chairman-elect Ajay Tyagi, among other top officials from the ministry and the Reserve Bank of India (RBI).
Besides, SEBI conducted its Board meet which discussed the action plan for FY 2017-18 including — reduction in the “listing time” gap — and for allowing institutional participation in commodity derivatives markets in a phased manner after consulting stakeholders and regulators.
After deliberations SEBI’s Board approved the proposal for comprehensive review of “Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012” and “SEBI (Depositories and Participants) Regulations, 1996”.
In addition, SEBI’s Board took note of the progress being made on the concerns related to NSE’s trading infrastructure in the areas such as fair and transparent data dissemination process.
Earlier, the securities market regulator had carried out an examination into the matter.
“The Board also took note of steps taken by SEBI in consultation with TAC (Technical Advisory Committee) to strengthen the exchange’s trading infrastructure in the areas namely, fair and transparent data dissemination process,” the statement added.
“The concerns related to systems and processes at the exchange arising out of examinations are being addressed in consultation with TAC and NSE’s Board.”