Sebi Wins ‘Best Business Regulator’ Award in Asia Pacific

June 8, 2024

According to The Asian Banker, the Securities and Exchange Board of India (SEBI) was recently given the “Best Conduct of Business Regulator” award for the Asia-Pacific area. This award, which was given in an event in Hong Kong, shows how important SEBI has been in improving the rules that govern Indian stock markets. Kamlesh Chandra Varshney, a Permanent Member of SEBI, accepted the award on behalf of the organization.

Enhancement of Regulatory Framework

SEBI has taken several important steps that have made the Indian stock market much more efficient and trustworthy. The introduction of the T+1 settlement method is one of the important projects. This method, which began to be put in place gradually in 2021 and was fully operational by January 2023, has greatly cut the time it takes for investors to get to their money after trading, which has increased market liquidity and efficiency.

Impact of SEBI’s Innovations

The Asian Banker pointed out that SEBI has not only made the market more efficient through strict enforcement and new regulatory practices, but it has also made sure that customers are treated fairly and kept the market’s integrity strong. These efforts have raised the bar for doing business in India’s financial markets, making them more in line with best practices around the world.

What is T+1 settlement?

The T+1 settlement cycle is the process by which trades in assets are settled one business day after they happen. The goal of this method is to make markets work better and lower the risks that come with trade settlements. Key global markets, including the U.S., came up with T+1, which will require a lot less capital to clear trades. The U.S. plans to fully adopt it in 2024. In addition, it could affect liquidity by making banking processes go faster. In the past, the change from T+2 to T+1 has been made possible by improvements in digital technology and changes to the rules to allow for faster payments. The change is part of a larger effort to improve the infrastructure of financial markets in reaction to more trading and the need for more resilience.

More About Sebi

Establishment and Statutory Powers: SEBI was established in 1988 as a non-statutory body without any statutory powers. On January 30, 1992, SEBI was given statutory power through the SEBI Act. It is headquartered in Mumbai, SEBI has Northern, Eastern, Southern, and Western Regional Offices.
Functions and Objectives: SEBI was created to protect investors and ensure fair practices in the securities market. It develops regulations for the securities market to maintain market integrity and transparency. In 1992, SEBI introduced the concept of registered Foreign Institutional Investors (FIIs) to attract foreign funds into the Indian markets.
Significant Actions and Developments: In 2010, SEBI banned 14 life insurance companies from issuing unit-linked insurance plans (ULIPs), categorizing them as mutual fund products. SEBI continuously works towards improving market infrastructure, implementing best practices, and growth in the securities market.

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