At a time when global financial developments hold the key to stock market movements in India, the Securities and Exchange Board of India (Sebi) has set up an International Advisory Board (IAB), which would hold its first meeting next month.
The IAB would comprise of seven members, including the Sebi Chairman UK Sinha.
The six outside members include Viral Acharya from New York University's Stern School of Business, Singapore Exchange's Independent Director Jane Diplock, Harvard Business School's Mark Maletz, Maureen O'Hara from Cornell University's Johnson Graduate School of Management, Arvind Panagariya from Columbia University's School of International & Public Affairs and China Banking Regulatory Commission's Andrew Sheng.
The first meeting of the IAB is scheduled on January 27, 2012 in New Delhi, as per a memorandum submitted to Sebi board in its last meeting on November 24.
The IAB would help the capital market regulator Sebi better understand the global market trends and emerging developments and challenges.
The decision to set up an IAB was taken by the Sebi board in its meeting on July 28, pursuant to which Sebi began the process of setting up this board.
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For the probable names, Sebi had sought suggestions from its Whole Time Members, as also from the two former RBI Governors YV Reddy and Bimal Jalan, besides Raghuram Rajan, Professor of Finance, University of Chicago, and Kaushik Basu, Chief Economic Adviser, Ministry of Finance.
The IAB would discuss various macro-level and strategic issues and help Sebi in its mandate to protect the interests of investors, promote the market growth and regulate it.
All the recommendations of the IAB, alongwith the actions taken by Sebi, thereon, will be reported to the Sebi board.
It was previously decided that the members of the IAB will be nominated by the Sebi Chairman, from amongst the eminent persons in law, finance, economics and other related areas.
The IAB members would have a three-year term, and would be paid "an honorarium of $2,500 for each meeting." Sebi would also arrange for air travel in business class, five-star accommodation and other incidental matters for the members.
The IAB would meet twice in a year in India, and a third meeting, if required, would be organized by Sebi through video-conferencing.
Sebi Chairman would preside the IAB meetings, where all the Whole Time Members of Sebi would be permanent invitees.
Sebi Chairman can bring in the senior functionaries from related organizations or other experts as special invitees.
At its board meeting in July, Sebi had told its board that the events related to the recent global financial crisis have highlighted the need for continuous assessment of various developments and an immediate regulatory response.