Whose finger left the print?

The market regulator Securities and Exchange Board of India Sebi has decided to fingerprint all stock market intermediaries in order to bring more accountability and transparency into the Indian stock markets. According to reports, the National Securities Depository Ltd NSDL has already started fingerprinting the merchant bankers, lead managers and their families in the first phase. According to Sebi officials, the ultimate aim is to fingerprint all market participants, including the promoters and small investors. This is a long-drawn process which will take at least two years.

There is no quibble with the idea, the problem is with priorities. Should not Sebi get the promoter fingerprinting done on priority today? To do it after the IPO boom is over and fly-by-nights have run away again will defeat the purpose. Getting promoters fingerprinted and photographed will be a step in the right direction so that they do not run away with investors8217; money.

The other issue is the question mark over the final use of this data. There is no clarity on who will finally use this or whether the enforcement authorities will be involved in this process. Sebi should think of involving the Economic Offences Wing of the police in this exercise, so that even if the promoters do disappear, they can be tracked by the enforcement authorities.

Certainly, Sebi8217;s move is a step in the right direction, greater accountability is better for the health of the market. It will deter all unscrupulous promoters and merchant bankers from the stock markets. But this move needs better prioritisation, coordination and direction.