SEBI Chairman U.K. Sinha said on Friday at FICCI’s capital market conference that the regulator believed in consultation with various stakeholders before making policy decisions.
“In the minds of people, there are two very extreme benchmarks or call it stereotypes about regulators,” said Sinha.
“One stereotype is that the regulator is very opaque and does not listen to people. It is very difficult to put across your ideas to the regulator. And the other extreme is that the regulator is very confused. The regulator does not know what is to be done. So whatever ideas or inputs are received by him, he just starts working on that. I don’t know in what category you will place SEBI,” he said.
On SEBI’s steps to reenergise the mutual fund industry, Sinha said that this is the point up to which SEBI could go. “Our task is over and you have to respond. You have to go out beyond top 15 cities. You will get business that is sustainable and long-term in nature.”
The regulator was very critical about market-men not tapping the hinterland and observed that more money from cities beyond the top 15 could be raised.
“I went to Patna and Guwahati to spread awareness. There were a group of people who went with me for whom it was the first encounter with a small place. This must change. The AUM of the MF industry in Assam is less than Rs 1,000 crore. There are just two brokers in Assam. When one unauthorised investment scheme in Assam was able to raise more than Rs 1000 crore in one year, why not the whole MF industry?,” he asked.