Securities and Exchange Board of India (Sebi) Chairman Ajay Tyagi on Tuesday said manipulators will not be allowed to take advantage of the volatility in the stock market, which has plunged by 976 points in the last two days due to a combination of global and domestic factors that impacted the investor sentiment.
“The domestic markets are volatile, but they are globally volatile too. Our risk management economics are in place and manipulators will not be allowed to take advantage,” Tyagi said, adding that the regulator is vigilant.
Addressing the ‘Ficci CAPAM 2018’ conference, Tyagi said the increase in oil prices, tighter global financial conditions, spillover risks from a global trade conflict and rising regional geopolitical tensions are some of the potential economic risks for the country, despite a positive economic growth outlook.
The regulator will soon take a call on the recommendations by the fair market conduct committee to further strengthen the rules to deter financial crimes like frauds, market manipulations and insider trading, he said. “We are also equally committed to ensure clean and safe markets. We are duty bound to ensure that the market mechanism is not misused or manipulated by the unscrupulous elements,” Tyagi said.
Calling for bigger, cleaner and safer markets and enhancing the overall governance standards for issuers, intermediaries or market infrastructure providers, Tyagi said, “the fair market conduct committee constituted by Sebi has since submitted its recommendations, which were also put in public domain seeking comments. A view on these recommendations will be taken soon.”
Tyagi said objectives of improving ease of doing business and maintaining market integrity have to be properly balanced. “While it may not be always possible to accurately quantify the costs and benefits of making a regulation, it will be our endeavour to keep on improving the processes going forward,” he said.
The Sebi chairman said that the continued investor confidence is a crucial factor in attracting more investors to the securities market and right governance framework and a transparent and clean market go a long way in meeting these expectations of investors at large. “Sebi will continue to focus on further enhancing the overall governance standards in the market, be it for issuers, intermediaries or market infrastructure providers,” Tyagi said. —With PTI