'Instance of greed, egregious conduct,' says SEBI's Tuhin Kanta Pandey on Gensol incident

Market regulator Securities and Exchange Board of India (SEBI) is aiming to take timely and exemplary action to deter potential miscreants.

In a recent interview to Business Standard, SEBI chairman Tuhin Kanta Pandey, highlighted how things should be made more stringent, saying, "Obviously, the regulator cannot be everywhere. We can't practically sit in every board room and run it... and that's going to be ineffective." The SEBI chief underlined that the regulator does, act promptly to punish bad actors it learns of, either from its own surveillance or based on information it receives.

"The governance standards and guardrails are in place. The board and the independent directors have to function. Material things have to be approved by the shareholder, auditors are there... if the guardrails fail because of certain fraud or greed, which is uncontained by several stakeholders, the violation should be punished, Pandey said in an interview.

He also spoke on the recent corporate misgovernance issue at Gensol Engineering, saying these are not systemic issues that require a regulatory reboot but instances of greed and egregious conduct.