Letter to BS: Sebi chief must be praised for seeking review of Budget plan

Sebi Chairman Ajay Tyagi has claimed government proposal that mandates transferring 75% of the market regulator's surplus funds to centre will affect the functioning of Sebi

This refers to “Sebi chief questions Budget plan for transfer of surplus funds to govt” (July 18). Securities and Exchange Board of India (Sebi) Chairman Ajay Tyagi must be praised for seeking a review of the proposal that mandates transferring 75 per cent of the market regulator's surplus funds to the central government. Tyagi has claimed that the proposed move would affect the functioning of Sebi as well as the securities market while over-emphasising the rationale behind the market regulator keeping a reserve fund for mandatorily protecting the interests of the investors.

As stated in this report, two provisions