SEBI to Review Delisting Process and Insider Trading Norms in Upcoming Meeting: Madhabi Puri Buch
Market regulator, SEBI, set to discuss changes in delisting regulations and insider trading norms in its next meeting, according to Madhabi Puri Buch, the chairperson of the board. The meeting, scheduled for December or January, will address potential amendments and improvements to enhance transparency and trust in the stock market. Read on to learn about the proposed changes and SEBI’s commitment to data-driven decision-making.
Delisting Regulations Under Review
SEBI chairperson Madhabi Puri Buch recently addressed an event organized by industry body Ficci, where she announced the forthcoming discussion on delisting regulations. There was a belief that SEBI would never review the current regulations and would stick to the existing reverse book-building process. However, a consultation paper has been floated, gathering feedback from stakeholders. In the upcoming board meeting, SEBI will present the proposals for further discussion and consideration.
Rethinking Insider Trading Norms
Contrary to the perception that SEBI is inflexible when it comes to insider trading, Buch revealed that SEBI has been actively taking steps to reconsider and reshape the norms surrounding this critical area. The regulatory body acknowledges the need for a more interactive approach to shape regulations in an ever-evolving market environment. Buch emphasized that data plays a crucial role in the decision-making process. SEBI is utilizing data and conducting backtesting to drive regulations, ensuring that any changes are supported by evidence and sound analysis.
Embracing Public Consultations
SEBI recognizes the importance of engaging with market participants and stakeholders. Buch highlighted that around one-third of the 167 circulars released last year underwent public consultations. This shift towards a more interactive strategy underscores SEBI’s commitment to ensuring transparency, receiving valuable inputs, and incorporating diverse perspectives into the regulatory framework.
Strengthening Transparency to Build Trust
Transparency is a cornerstone of market trust, and SEBI prioritizes its implementation. Buch addressed concerns around how to effectively implement transparency in the market. She emphasized that the responsibility lies with entities and that transparency is not compromised even after the departure of key individuals. SEBI is closely following the directions of the court-appointed committee, working diligently to address the concerns and forge ahead. Investors who have provided proof of investment have already received refunds, demonstrating SEBI’s dedication to investor protection.
SEBI’s Data-Driven Approach
SEBI places great importance on data analysis and data-driven decision-making. Buch stressed that no regulation will be formulated without thorough analysis of relevant data. By utilizing data and technology, SEBI aims to develop robust and effective regulations that support market integrity and investor confidence.
Conclusion
SEBI’s upcoming meeting holds significant importance as it focuses on reviewing the delisting process and insider trading norms. The regulator’s commitment to transparency, stakeholder engagement, and data-driven decision-making reflects its overarching goal of bolstering trust and integrity in the stock market. By embracing public consultations, SEBI ensures a wider range of perspectives, fostering a more inclusive and robust regulatory framework. As the Indian capital market continues to evolve, SEBI remains at the forefront, adapting its strategies to meet the challenges and opportunities that lie ahead.
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