Sebi is tightening enforcement, examining Uday Kotak panel report on corporate governance: Ajay Tyagi

Mumbai: To ease unnecessary work load, Sebi chairman Ajay Tyagi on Wednesday said the regulator is trying to revamp its enforcement mechanism and is also working on tweaking certain regulations to make them simpler. “Sebi is trying to totally revamp its enforcement to see that whatever hard action is taken should serve as a deterrent. We should not be taking up many cases that we can’t handle, which can lead to harassment like allegations. We have to simplify it and also revisit the settlement regulations,” Tyagi said here at CII’s national financial markets summit. “We have also started rewriting certain regulations to make them simpler,” he added. According to the Sebi chief, the regulator is working on tightening the nuts and bolts, rather than effecting big bang reforms, as this would be beneficial to everyone. He also said that Sebi is examining various recommendations made by the Uday Kotak committee report on corporate governance and has received hundreds of comments on the same from various stakeholders. “We are examining them and will take a final view in consultation with other regulatory bodies as well as the ministry of corporate affairs. We will try to finalise the issue as quickly as possible with consensus,” Tyagi noted. On implementing the centralised know your client (KYC) procedure for the entire financial system, Tyagi said that Sebi is looking for a more simplified set of norms. “Sebi’s view is that KYC should be simplified. It could be based on PAN or Aadhar,” he said. Besides, noting that capital market segments have been performing well, Tyagi said Sebi is working together with RBI to further improve the corporate bond markets.