This refers to the Lunch with BS on C B Bhave (April 5). I would like to mention that Bhave should be “credited” for weakening important market infrastructure institutions, thereby keeping at bay the growth of the Indian capital market. Retail participation in the capital market has been encouraged by successive governments by promoting the mutual fund industry through tax and other sops. Removing their only revenue sources resulted in the decline of assets under management (AUM) by Rs 2,000 crore between September 2009 and December 2010.
More damaging to Sebi was the exoneration of Bhave for his role as National Securities Depository Ltd (NSDL) chief in the IPO scam of 2006 by its board. Perhaps no other regulator other than Bhave had so frequently crossed regulatory turfs, thereby denting the image of Sebi. One hopes the current incumbent, U K Sinha, begins to restore the credibility of Sebi’s governance and develop the Indian capital market.
Govinda Rao, New Delhi
