Sebi chief wants market makers to voluntarily report misconduct

This call to action assumes importance given that the equity market has been on song lately, with the Sensex crossing the 80,000-mark for the first time on July 3 in its fastest-ever 10,000-point rally in just 58 sessions. Amid this surge, Sebi has been putting in place stricter steps to ensure market integrity, including stringent instructions against brokerages engaging with ‘finfluencers’ and individuals claiming to be investor educators or market experts.

Highlighting the critical role of trust from retail, institutional, and foreign investors in fostering market growth, Buch warned that “any erosion of trust due to industry mischief can lead to more stringent regulations and a potential collapse of the ecosystem.”

To prevent such scenarios, Buch urged the industry to voluntarily report any unethical practices they notice. “Bring to our notice what mischief is going on in the market so as to avoid our exploding into the system and coming up with a heavy hand. Good players should come to us about the mischief in their own interest,” she asserted.

She also urged non-members to join their respective industry lobbies to help ensure all voices are represented. “It will make your life easier, it will make compliance easier. The person in the centre, the investor, needs to trust us, only then the industry will grow. We must ensure that the trust at the centre is never broken,” she concluded.