Hits and misses of outgoing SEBI Chairman UK Sinha

Moneycontrol Bureau

SEBI Chairman UK Sinha, who leaves the office on March 1, has had an eventful seven-year term at the capital markets regulator. His tenure has been marked by big orders against companies like Satyam Computer Services and a war against the Sahara Group over fund raising through wrongful sale of securities.

Sinha will be remembered as the chief under whom SEBI strengthened financial markets regulations, putting in place stronger rules to curb insider trading. Under the Sinha regime, hallmark changes in the rules for listing and delisting companies were made, besides bids to spruce up corporate governance at listed companies.

The Hits

IPO listing timeline: In June 2015, the capital market regulator halved the time required between listing and closing of an initial public offering (IPO) to six days.

Stock exchange listing norms: SEBI introduced new norms for listing of the stock exchanges and announced detailed guidelines on compliance, disclosure, and listing. It also put in place regulations to ensure 'fit and proper' status of each investor on the bourses.

FMC-SEBI Merger: Commodities regulatory body Forward Markets Commission (FMC) was merged with the capital markets watchdog in September 2015. Sinha’s team ensured the merger happened within a few months after Finance Minister Arun Jaitley announced the plan in his Budget speech that year.

The Misses 

Saradha Scam: Top SEBI officials were hauled up by the Central Bureau of Investigation in the Rs 10,000-crore Saradha chit fund scam to ascertain if they benefitted the firm running the ponzi scheme.

Inaction on large corporates: Even though SEBI barred liquor baron Vijay Mallya from trading in securities market for alleged fund diversion from United Spirits, the move may have come a bit late.

Algo-trading Norms: New algorithmic trading regulations, meant to create a level-playing field and fair access, were to come up by 2016-end. SEBI is still in the process of finalising the regulations for high frequency trading.