Whether it is the "Disgorgement Order" or the move to accept and recognise the offer of "Super Self Regulatory Organisations" of a section of the market participants, SEBI's initiative have to be complemented and encouraged. The man at the helm Sri M.Damodaran deserves all the praise he is rightfully receiving..
His recent remarks that "Absence of Precedence would not be a deterrent for the Regulator" as quoted in your column deserves to be singled out and appreciated. India is unique and is today a thriving financial market where the psychology and the behavioural aspects of the market participants are strikingly different than those of the other developed economies. The lax in non compliance to the laws of the land (read - feeling we can manage it all) be it a simple a traffic rule or the tax compliance, emboldens the individual to use his capabilities to influence.
He comes with this mind set to the market, which the Regulator has to take note of. Regulators actions will therefore need to be punitive and swift to change this mind set. The over reach of the regulator in commenting on the media is another case where he is moving on to ensure investors protection. Regulators actions are crucial as his dithering can shake up investors confidence and scare away the fair weather friends.
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