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Sebi has 'strategic aim' to be top watchdog

BS Markets Bureau

The Securities and Exchange Board of India has set out a 'strategic aim' for itself to become a dynamic and respected regulator globally.

The strategic aim, which is a medium term target, to be achieved over one year, involves investors, corporates, financial intermediaries and the regulatory regime.

Sebi will also review working of depository services and take steps to introduce hedge funds.

Sebi chief, G N Bajpai, speaking at the launch of its Electronic Data Information Filing and Retrieval system elaborated on each of the parameters.

Investors, he said, should be able to get a fair deal in their transactions in the financial markets.

For this they should be able to understand their rights, demand higher standards from the entities involved in wealth creation, accept more responsibility for their actions (in investments) and finally understand the trade-off between risk and return.

Sebi is planning to launch nation-wide investor education campaign to make them aware of their rights.

Further Sebi is also pushing for continuous disclosures in the corporate sector, where information would be as close to real time as possible.

With regard to corporates, Bajpai said that firms and their management should adopt fair practices while dispensing products and services.

"They should behave with integrity and treat their customers and investors fairly," he said.

Financial intermediaries, he said, should understand and discharge their responsibilities and make sure that the markets operate in an efficient and orderly manner.

Bajpai said that strengthening the secondary market, the derivatives segment, the debt market and review of depository services would be undertaken in order to achieve the goals set out.

The regulatory regime should be one in which investors could repose confidence.

Meanwhile, Sebi said Edifar system that would initially disclose important financial information on 200 companies included in BSE Sensex, BSE-200 and NSE Nifty Index.

The investors, market participants and regulatory organisations would get all information including results and shareholding pattern at one location (on Edifar).

About 500 companies would be added to Edifar system each quarter beginning September, executive director Pratip Kar said.

The dual filing -- electronics and physical filing of records -- would continue till the system and software for Edifar stabilises, he said.

"The Edifar is better than the Edgar system of Securities and Exchange Commission (SEC) of US and it would be extended to 2,000 companies by march 2003," Bajpai added.

The Edifar system has been developed in collaboration with National Informatics Centre.

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