Capital market regulator SEBI is looking to redefine its role in the Indian financial sector and will bring on board a global management consulting firm for this.
Although SEBI has decided to appoint international consultants Oliver Wyman, an agreement is yet to be signed.
Oliver Wyman leads the race, scoring the highest marks for the technical bid. Also, its financial quote is the lowest among those that were technically qualified.
The consulting firm will also help the Securities and Exchange Board of India (SEBI) re-prioritise its focus areas over the next five-ten years, besides re-designing its organisational structure to be more in tune with the changing times.It will review SEBI’s functions, role, structure and vision in a project that will span 27 months, according to Namo Narain Meena, Minister of State for Finance.
Time-Frame
The consultant is to submit a final report in nine months. In the next 18 months, it will provide project management support for implementation.
As per the request for proposal (RFP) document, the consultant will get four months to formulate a draft strategy and re-organisation structure.
One month has been provided for brainstorming sessions with senior management.
For the preparation of final outline of work and the final report, the consultant has been given two months each.
Market implications
The broad scope of the project will include identifying specific areas where the securities markets can be further deepened, and studying the inter-linkages between SEBI and other regulatory bodies. The consultant will be required to develop various scenarios for the development of the securities market, identify possible triggers for change, and assess the implications for various market participants.
It will also assess the regulator’s human and technological resources and make recommendations.
The fact that SEBI is open to reviewing its technological and human resources will bolster confidence among capital market participants, economy watchers say.
It is not often that an Indian regulator ropes in internationally–reputed management consultants to advise on organisational restructuring or to re-prioritise focus areas.