Nirmala Sitharaman tells SEBI that next-generation reforms are needed to improve the ease of doing business.

Finance Minister Nirmala Sitharaman urged the SEBI on Tuesday to start the next wave of reforms to increase the ease of doing business and brace for future market instability in the wake of the US Federal Reserve’s activities.

Addressing the SEBI board of directors, Sitharaman praised the regulator’s achievements while emphasizing the need for more steps to decrease compliance burdens, market intermediation costs, and increase investor safety.

As the focus on ESG (Environmental, Social, and Governance) investments rises, she also urged the watchdog to assist the corporate bond market, as well as the green bond market, to grow.

Sitharaman stated that the Sebi must “initiate the next wave of changes to promote ease of doing business and be prepared for future market turmoil as a because of US Fed policies.”

The minister’s comments come as the Federal Reserve has decided to tighten its monetary policy after a lengthy period of loose money, and its actions could prestige fund flows into emerging markets like India.

According to a press release, Sitharaman addressed the Sebi board in the national capital on Wednesday for the first time since presenting the Budget on February 1. Ajay Tyagi, Chairman of the Securities and Exchange Board of India, informed the minister on the crucial trends and prognosis for the Indian securities market, including fundraising efforts and growing individual investor participation.

He also informed the finance minister about the status of the capital market initiatives included in last year’s Union Budget.

Tyagi also emphasized the increased fundraising activity through the capital market to support the Union Budget’s primary goal of capital formation in the economy.

Every year, the finance minister addresses the boards of SEBI and RBI following the presentation of the budget.

The meeting was attended by Anand Mohan Bajaj, Additional Secretary at the Department of Economic Affairs, M Rajeshwar Rao, Deputy Governor at the Reserve Bank of India, K V R Murty, Joint Secretary at the Ministry of Corporate Affairs, and V Ravi Anshuman, Professor at the Indian Institute of Management in Bangalore.

Sebi’s Whole-Time Members — S K Mohanty and Ananta Barua — including other senior regulator officials, were present at the meeting.

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