Post News Network
When records of lakhs of investors of Sahara’s controversial money-raising scheme reached Sebi headquarters in Mumbai, loaded in 127 trucks in 2012; the market regulator was prepared with the space to store those documents. This speaks volume about the meticulousness of Sebi as a regulator under the leadership of UK Sinha. Quite often branded as an activist in corporate circle for his unrelenting pursuit of Sahara case, this 62-year old Indian Administrative Officer has headed Sebi during a crucial phase in which the regulator has seen much transformation in its role and responsibilities.
Sinha, who started his career as a probationary officer in the State Bank of India before joining the coveted civil services, has varied exposures in different fields. From field experience as district magistrate of Patna to financial sector regulator, Sinha has been credited for spearheading many key changes in financial market. As joint secretary in Department of Economic Affairs at Ministry of Finance, he looked after capital markets, external commercial borrowings, pension reforms, and foreign exchange management functions during 2002- 2005 period. Sinha was instrumental in drafting the SEBI (Amendment) Act, 2002; UTI (Repeal) Act, 2002; the Securities Law Amendment Act, 2004; and the PFRDA Bill 2005. Before joining Sebi, he was heading UTI Asset Management Company. He had also a stint with the Association of Mutual Funds in India (AMFI) as its chairman prior to joining Sebi.
During his tenure, Sebi has turned into a proactive regulator with a hawkish eye on insider trading and other stock market manipulations. The new law on insider trading and related party transactions is one of initiatives of Sebi under the leadership of Sinha to take on the might of large corporates. The market regulator has banned hundreds of market participants during his tenure for their dubious roles in stock exchanges. Under his chairmanship, Sebi has also waged a war against collective investment schemes (CIS), known as ‘ponzi’ schemes in which lakhs of gullible investors have lost money.
In its new role, Sebi is now preparing to merge Forwards Markets Commission with itself to regulate the commodity market in the country. With more penal power of search and seizure along with confiscation, Sebi has already started acting tough on wrongdoers. As Sinha’s tenure is going to be over in February, 2016; he will be remembered as a bureaucrat who successfully transformed himself as a market regulator and discharged his duties without fear or favour.