IAS officer Ajay Tyagi is taking charge as the chairman of Securities and Exchange Board of India (SEBI) on 2 March 2017. He has replaced Mr. U.K Sinha. Mr. Tyagi needs to immediately take a call on five key issues:
1. Corporate governance– The recent high-profile board room battle has triggered the need for transparency and ensuring that interest of minority shareholders is safeguarded.
2. NSE’ co-location issue and a new set of rules for high-frequency trade (HFT)– Sebi to finalize the action on NSE’s co-location matter over alleged unfair trade practices which also triggered the need for a tougher rule against high-frequency traders.
3. Start-up listing/REITs launch– To address the capital raising needs of new-age technology companies, Sebi introduced a separate listing platform meant for startups.
4. Self-trading of exchanges– At present, Sebi’s regulations don’t allow exchanges self-listing and self-trading. The market regulator has taken a firm stand on not allowing self-listing.
5. Commodity market development– To shore up confidence in commodity space needs to also come up with the new set of rules for the commodity market especially allowing more participants in the spot commodity market and sorting the legal hurdles in option trading.
Source- The Indian Express