The Confederation of Indian Industry (CII) president Sanjiv Goenka said on Tuesday that the capital markets watchdog should aim at ensuring effective and transparent regulations.
Goenka suggested that regulations of the regulator could be adopted from the best practices of the world's premier capital markets. For instance, he said the structure of the Securities Exchange Commission (SEC) of the US could be followed to form regulations for the Securities and Exchange Board of India (Sebi).
This statement was an extension of his earlier observation, which was made just after he was elected as the chief of the country's premier chamber, that Sebi should be manned by people who are trained to take on this role.
When asked whether he was in favour of representation of the industry on the Sebi board, he said, "It does not matter where from a man comes to Sebi. What we need is to train them, educate them and then ask them to operate in a transparent way."
"Sebi's objective should deliver effective regulations. There is no point in taking up a case which was filed four years ago. And to ensure effective regulations, Sebi has to manned by trained people."
CII, he added, had formed a task forced under the chairmanship of the ICICI chairman K V Kamath to find out problems in the Indian stock markets and suggest wide-ranging changes to bring about transparency and confidence.
He also said the timing of the proposed ban on badla was in not "appropriate."
"Although I am not an expert to speak on the subject but I feel there should be some future trading mechanism before drawing a curtain on badla trading," he added.
