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BJP economic agenda to introduce more teeth and accountability for Sebi
Gouri Agtey Athale
PUNE, Jan 17: The Bharatiya Janata Party (BJP)'s economic agenda will seek to introduce accountability for bodies like the Securities and Exchange Board of India (Sebi), even as it approves strengthening of the market regulator.The BJP is keen that economic offenses are made cognisable, allowing the police and other investigating agencies to take immediate action on innovative finance schemes which dupe investors, Kirit Somaiya, BJP MLA and member of economic policy sub-committee of the national manifesto drafting committee, said. He added that it is the duty of bodies like the Registrar of Companies (RoC), Sebi, stock exchanges, RBI, CBI and the police to remain alert. If economic offenses are made cognisable, agencies such as these would be able to react faster, unlike now when they react only after a scam has taken place. Moreover, the BJP is all for extending the principle of accountability to officials of regulatory bodies. Somaiya's contention was that company officials are nabbed while officials
of regulatory bodies are not held liable for their role. While the BJP "welcomes" foreign investment, it would like this to be in the core infrastructure sector, including power and roads. Somaiya was emphatic that it would bring in the one-window clearance for power projects. For the consumer goods sector, though, it will lay down guidelines for MNCs seeking entry in this sector, which would ensure that there is a "level playing field" for all. The party is opposed to the "open" policies of south-east Asia, which it believes are "inadvisable" for India, pointing to the inflow and sudden outflow of "hot money". Somaiya said the BJP's immediate action, in bringing out an economic policy paper, has been prompted by the south-east Asian crisis.The BJP's election manifesto will have a chapter dedicated to the economy which will cover issues concerning the capital market, financial institutions, small investor protection, and so on. The manifesto committee is meeting in Delhi today. These recommendations will
be placed before the committee. On the capital markets, Somaiya said that the BJP would like to reconsider the options before weak stock exchanges or those whose functioning is suspect, and was opposed to the indiscriminate opening of new ones. Launching a scathing attack on the outdated or non-existent legal framework for economic offenses, Somaiya said that the BJP would study each proposal thoroughly before opening up a sector.He pointed to the plantation companies and NBFCs as two examples of innovative products offered to the public before any regulatory framework was created. This led to large number of small investors suffering the consequences. Somaiya said that with new financial products constantly being offered, it was essential that a legal policy framework is in place before opening up the sector. The BJP will also to set up an investors' forum on the lines of consumer courts where cases can be dealt with speedily. The party would also like to introduce an Act on the lines of the existing
Tamil Nadu Act which provides protection to the small investor. Somaiya was in favour of NBFCs providing insurance cover to deposits of up to Rs 1 lakh.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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