Lokpal clears former SEBI chief Madhabi Puri Buch after Hindenburg Research report

Ashish Kumar Chauhan, MD & CEO of BSE, remarked on the accomplishments of his predecessor, Ajay Tyagi, as Chief of the Securities and Exchange Board of India (SEBI). Tyagi was responsible for significant regulatory changes during his tenure, including the introduction of the ‘skin in the game’ concept for mutual funds, which mandated fund managers to invest a certain percentage of their own funds into the schemes they manage.

Chauhan also highlighted Tyagi’s efforts in enhancing transparency and efficiency in the Indian securities market. Tyagi introduced initiatives such as the collection of upfront margins and the use of blockchain technology for asset management. These measures aimed to streamline operations, reduce risks, and improve investor trust in the market.

The outgoing SEBI chief also played a pivotal role in implementing reforms related to the mutual fund industry. Tyagi oversaw the categorization and rationalization of mutual fund schemes, ensuring clarity and consistency for investors. He also emphasized the need for responsible investing by fund managers to protect the interests of investors and maintain market integrity.

Additionally, Tyagi’s tenure saw the enhancement of SEBI’s enforcement mechanisms and investor grievance redressal processes. Under his leadership, SEBI took strict action against entities violating securities regulations, thereby sending a strong message to market participants about the consequences of non-compliance. The establishment of the SEBI Office of Investor Assistance and Education further demonstrated Tyagi’s commitment to safeguarding investor interests.

Chauhan commended Tyagi for his contributions to the development and regulation of the Indian securities market, emphasizing the importance of continuity in SEBI’s operations. As Chauhan took on the role of SEBI chief, he expressed his dedication to upholding the organization’s core values of transparency, accountability, and investor protection.

Moving forward, Chauhan acknowledged the challenges ahead, particularly in the evolving landscape of technology and innovation in financial markets. He emphasized the need for SEBI to adapt to changing trends and ensure that regulatory frameworks remain effective in addressing new complexities. Chauhan’s vision for SEBI includes fostering a conducive environment for market participants to thrive while maintaining regulatory vigilance to protect investor interests.

In conclusion, the leadership transition at SEBI marks a significant milestone in the regulation of India’s securities market. Tyagi’s legacy of reforms and initiatives sets a strong foundation for Chauhan to build upon as he assumes the role of SEBI chief. With a focus on continuity, innovation, and investor protection, Chauhan aims to steer SEBI towards continued success and relevance in the dynamic financial landscape.