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Good move by SEBI

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Letter to the Editor

As per reports, good initiatives are taken by SEBI recently for example, given the increasing complexity of market participants’ conduct regulation, SEBI has tightened the responsibilities of intermediaries, particularly trading related entities.

It has proposed that brokers be held accountable for their clients’ actions in order to root out malpractices. Similarly, brokers and depository participants are asked to maintain websites that disclose a variety of standard information.

Furthermore, in order to reduce money laundering avenues, it is planning to hold intermediaries accountable for enhanced KYC standards for their clients as per the recent reports. It has intended to create a centralised database of Foreign portfolio investment beneficial owners.

SEBI has instructed regulated entities to implement best practises and improve their risk management systems. All of these regulatory steps will improve the quality, integrity, and stability of our securities markets by increasing disclosure, holding clients accountable for their actions, improving risk management practises, and reducing system/cyber vulnerabilities. It will, however, come at a cost to the intermediaries and their clients, depending on how much cost transfer the intermediaries are able to do in an increasingly competitive environment.

(Vijay Kumar H K, Raichur, Karnataka)


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