The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as “To protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto”, said Mr. Narinder Wadhwa, National President, Commodity Participant Association of India (CPAI).
The primacy is given to “To protect the interests of investors in securities”.
SEBI has been taking many steps toward cautioning investors in an attempt to make an empowered investor and Aatmanirbhar investor. We at CPAI, wholeheartedly welcome this step. SEBI is best placed to take a holistic view of the market place and share it with investors and new retail investors have been participating in the market at a faster clip than before, especially during the last two years. They are specially the ones who are bemused by the volatility in the market, added Mr. Wadhwa.
However it should be beyond mere do and do not and standard statements, and that has been more or less the template till now. It should talk about the economy, its macro, tailwinds and headwinds, said Mr. Wadhwa.
This step will help investors get some detailed datasets, that too from the regulator and not only from their wealth managers. The rationale that disclosures are made and to tell the market participants how those disclosures should be made added Mr. Wadhwa.