INSUBCONTINENT EXCLUSIVE:
New Delhi: Securities Exchange Board of India (Sebi) chairman Ajay Tyagi has said instances of crises at various entities in the financial
sector were affecting investor confidence, but does not indicate a problem for the entire sector.
Tyagi said the market regulator has
quickly responded to any issue cropping up within it’s domain
“Definitely such things affect the trust (of investors) but that does not mean everything is bad or everything is wrong,” Tyagi said
when asked whether crisis at DHFL, IL-FS and KSBL have impacted investors' trust
Sebi barred Karvy Stock Broking (KSBL) from taking new clients in respect of its stock broking activities, on November 22, and also
prevented it from using the power of attorney (PoA) given by clients after the broker was found to have allegedly misused clients'
“Whatever improvement is required, we are doing it quite quickly whatever is in Sebi's domain,” Tyagi said and referred to action taken
in the case of crisis at KSBL.
“Karvy was in our domain
We are trying to improve on rating agencies side and on bond market development,” he said
Tyagi, who was speaking at an event, said he was hopeful of the positive impact of the Insolvency and Bankruptcy Code (IBC) that will be
visible on the domestic corporate debt market in five years.
Describing the insolvency law, which came into effect in Dec 2016, as a
“landmark reform” in the country’s economic history, Tyagi said the Code has brought in behavioural changes among corporate debtors
He added that there was scope for further improvement, and that the Insolvency and Bankruptcy Board of India was already looking into a
comprehensive mechanism for insolvency proceedings.