Sebi considers secure UPI payment method for approved market intermediaries

The Securities and Exchange Board of India (Sebi) recently released a consultation paper outlining several proposals for public feedback. The document aims to gather input from stakeholders and experts to ensure that any new regulations or changes are well-informed and widely accepted.

One of the key proposals in the consultation paper is the introduction of stricter regulations for credit rating agencies. This move comes in the wake of several high-profile corporate defaults and instances of misleading credit ratings in recent years. Sebi is considering requiring rating agencies to conduct mandatory periodic reviews of their ratings, as well as to disclose the track record of ratings assigned by them.

Additionally, Sebi is looking into enhancing the governance and accountability of credit rating agencies by imposing stricter guidelines on their board composition and oversight mechanisms. The goal is to prevent potential conflicts of interest and ensure that rating agencies act in the best interests of investors and the financial system as a whole.

Another important proposal in the consultation paper is related to the functioning of index providers. Sebi is considering requiring index providers to disclose their methodology for index construction and rebalancing, as well as any conflicts of interest that may arise. This transparency is intended to enhance the credibility and reliability of indices used by investors for benchmarking and investment purposes.

Furthermore, Sebi is exploring the possibility of regulating proxy advisors more closely. Proxy advisors play a crucial role in providing recommendations to shareholders on voting matters at company meetings. However, concerns have been raised about the quality and independence of advice provided by proxy advisors. Sebi is considering implementing guidelines to ensure that proxy advisors maintain high standards of transparency, independence, and accountability.

Overall, the consultation paper put forward by Sebi reflects the regulator’s commitment to strengthening the regulatory framework for key players in the financial markets. By inviting public feedback on these proposals, Sebi aims to foster dialogue and collaboration with stakeholders to ensure that any new regulations are robust, effective, and in the best interests of investors and the broader financial system.

In conclusion, the consultation paper released by Sebi outlines several important proposals aimed at enhancing the governance and accountability of credit rating agencies, index providers, and proxy advisors. By seeking public comments on these proposals, Sebi is taking a proactive approach to regulatory reform and demonstrating its commitment to protecting investors and maintaining the integrity of India’s financial markets.