Midcap crash: Sebi seeks govt nod to access call records

Market regulator Sebi today said it has asked the government to allow it to access call data ecords of persons suspected to be involved in insider trading and other irregularities. The regulator is also working on revised guidelines for bringing in reforms in the mutual fund space and the same could be expected by the month end, Sebi's whole-time member Rajeev Kumar Agarwal said here.

Speaking to reporters after opening Sebi's new local office, Agarwal said that Sebi's request to access call data records was being processed. Asked whether Sebi would take action against more entities in connection with the July 26 midcap stock crash, he said it would depend on the progress of the ongoing investigation.

SEBI had barred 19 entities from the securities market after an initial probe into the recent share price plunge in some mid-cap stocks, including Parsvnath, Tulip Telecom and Pipavav Defence. Asked whether Sebi will consider posing hefty penalties on the offenders, Agarwal said it will be as per the regulator's norms.

Replying to another query, Agarwal said a lot of simplification of IPO processes was being evolved by Sebi. "We have improved the disclosure norms and made prospects much more simple and understandable for investors," he said. Sebi also has made KYC guidelines uniform and gone for the formation of KRA, he said.

"This will remove investors' hardships in going through the process of KYC again and again," he added. Since there has been far too many complaints regarding pricing of IPOs, Agarwal said the Sebi had gone for largescale reforms in IPO process. "Some reforms we have already implemented and some are going to be implemented soon," he said.

Agarwal said Sebi had made mandatory for merchant bankers to display their price performance record on their websites. "Every merchant banker coming out with an IPO has to be disclose what has been the price movement in the scrips for which the IPO was brought by them in the recent past. This measure will automatically improve the pricing of the IPO," he added.

Talking about the volatility in IPOs, Agarwal said Sebi has gone for circuit filters on the first day of IPO itself. Agarwal also said Sebi has to make an effort that the capital markets play a much bigger role in the economy and mobilising the savings of the citizens in the rapid productive process of the country.

The mobilisation of savings through capital market was still approximately 4.6% of the financial savings of the country, Agarwal said, adding whereas the total savings was approximately 32-33% of the GDP.

"So, there is a very small percentage of savings is being mobilised through capital markets," he said