Mumbai: Capital markets regulator Sebi chairman Tuhin Kanta Pandey Saturday made it clear that market manipulation is not going to be tolerated.
Speaking with reporters a day after an interim order against New York-based hedge fund manager Jane Street, Pandey said surveillance has been increased both by the regulator and also at the exchange level.
When asked if similar patterns have been seen with other foreign portfolio investors as well, Pandey said, “All what I can say that market manipulation is not going to be tolerated”.
Sebi on Friday barred US-based Jane Street Group from the securities markets and directed the group to disgorge unlawful gains of Rs 4,843 crore for allegedly manipulating stock indices through positions taken in the derivatives segment.
This could be the highest disgorgement amount ever directed by the Securities and Exchange Board of India (Sebi).
In its interim order, the regulator has debarred JSI Investments, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading — entities collectively referred to as the Jane Street Group — from trading until further notice, while continuing its investigation.
Addressing an event organised by the Bombay Chartered Accountants Society here, the Sebi chief made it clear that transparency in disclosing related party transactions, managing conflicts of interest and presenting material developments in a timely manner are “non-negotiable responsibilities” for the CAs.
“You have a critical responsibility to ensure that corporate governance is not reduced to a checklist,” he advised the CAs.
He also spoke in favour of not having too much of compliance.
“We are also mindful that too much of information, too much of compliance adds to a big compliance burden which may not actually serve the interest that we really intend to serve,” he said.
“We would also like to see wherever we have the possibility of doing better results with less compliance, less information, less onerous responsibility and less micromanagement on the part of regulator,” he said, adding that all the suggestions will be welcome.
PTI
