Fincl sector leaders give thumbs up to SEBI but seek balance in norms

Informist, Thursday, Nov 16, 2023

–NovaaOne Capital CEO:Seek balanced approach in regulatory framework

–NovaaOne Capital CEO: Our regulations at par with best in the world

–NovaaOne Capital CEO: Can consider platform for pre-IPO QIP trading

–NovaaOne Capital CEO:SEBI could be mother agency for listed co rejig

–M&M CEO: Social stock exchanges needed to drive inclusive growth

–M&M CEO: InVITs helped in growing co’s renewables ops

–SEBI Varshney: Need to intervene if 5% violators risk becoming 50%

MUMBAI – Leaders from the financial sector sought balance in the regulatory framework in the Indian securities market and gave a thumbs up to the Securities and Exchange Board of India for allowing new products in the market.

Speaking at a Federation of Indian Chambers of Commerce and Industry conference on capital markets, Sunil Sanghai, founder and chief executive officer of NovaaOne Capital, today said that India’s securities market regulations are at par with the best in the world. However, he said that a balanced approach in the regulatory framework was required.

Sanghai also proposed having a pre-initial public offer private trading platform for qualified institutional buyers to facilitate pre-offer investors. He said that companies coming out with initial public offers need a little hand-holding.

He also suggested that like the Reserve Bank of India playing an active role for handling bankruptcy cases which affect banks and non-banking finance companies, SEBI could also consider playing the role of a “mother agency” for listed companies under heavy corporate restructuring.

Mahindra and Mahindra Ltd’s Managing Director and Chief Executive Officer Anish Shah said that Indian companies are benefiting from new instruments allowed by the market regulator such as infrastructure investment trusts. He said M&M was able to use InvITs to grow its renewable energy business.

This made up for a vibrant capital market which allowed space for innovation and greater access to capital for Indian companies. Shah also said that SEBI’s openness to listen minimises angst among market participants.

With India’s economy increasingly putting its stamp of authority on the global stage, Shah suggested that the recently setup social stock exchange can make a big difference in bringing about inclusive growth in the country. The movement of capital can be facilitated through the social stock exchange, he said.

SEBI was all for a balanced regulatory approach, said Kamlesh Varshney, its whole time member. He agreed that there may not be more than 5% of market participants who are in breach of norms. But there will be a need to intervene if the 5% violators ran the risk of becoming 50%, he said. End

Reported by Rajesh Gajra

Edited by Aditya Sakorkar

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