SEBI constitutes advisory panel to link research to policy making

Market regulator Security and Exchange Board of India (SEBI) has constituted a "Research Advisory" committee that will assist in formulating policy to undertake research relevant for development and regulation of capital markets.

The committee, headed by Sankar De, would comprise prominent financial economists and market practitioners.

Objective

SEBI has constituted the research advisory committee to strengthen its research function and enhance its linkage to policy making.

Key Functions of the Committee

The committee will be defining objectives, scope and direction of research relevant for development and regulation of capital markets in the country with focus on the linkage of research to policymaking.

The committee will also be responsible for maintaining databases relevant for capital market regulation research.

It will also explore research collaborations with external researchers, including other regulators as well as academic institutions, both domestically and overseas, as appropriate.

About SEBI

• The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.

• It was established in 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992.

• 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 there with or incidental there to.

• SEBI has to be responsive to the needs of three groups, which constitute the market including the issuers of securities, investors and market intermediaries.

• SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and quasi-executive.

• It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity.

• Though this makes it very powerful, there is an appeal process to create accountability.

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