FICCI appreciated the proactive efforts being taken by Sebi in the wake of developments related to COVID-19.
In a conference call with the apex industry body CII (Confederation of Indian Industry), Tyagi apprised the industry leaders of various steps already taken by the Securities and Exchange Board of India (Sebi) and promised to look into various issues raised by them.
SEBI chief Ajay Tyagi, whose term is set to end on February 29, has been given a 6-month extension, a CNBC-TV18 flash said, quoting sources.
SEBI chairman Ajay Tyagi’s tenure will end on February 29, though there is speculation that he may be given an extension.
Under his stewardship, the regulator cracked the whip on fund houses that had standstill agreement, issued guidelines on side pocketing, and valuation of debt securities.
The main pillar behind UTI Equity Fund is buying great businesses as well as high-quality businesses and quality is quantifiable which translates into high return on capital employed.
Tyagi also made a pitch for setting up credit enhancement fund to facilitate infrastructure funding and operationalising a mechanism for credit default swaps.
He also said the watchdog has sought replies from fund houses like Franklin Templeton who have marked down their investment for debt holdings of telecom company Vodafone Idea following the broader issues in the sector.
Applications will be accepted until February 10.
The new plan involves creating a "data lake" project to augment analytical capabilities, he said while speaking at the Speaking at the National Institute of Securities Markets at Patalganga near here.
The Securities and Exchange Board of India (SEBI) may extend its March 31, 2020 deadline for listed companies to split the post of chairman and managing director post by a year.
When asked whether instances such as crisis at DHFL, IL&FS and KSBL have impacted investors' trust, Tyagi said, "definitely such things affect the trust (of investors) but that does not mean everything is bad or everything is wrong".
Here are the key decisions taken and issues discussed at the SEBI board meeting.
According to Tyagi, the regulator has taken a lot of steps to expedite cases.
He also called for the better integration of the corporate bond market with the government’s bond market.
During the meeting, the regulator found that "the participants were keen on emerging areas such as REITs (real estate investment trusts) and InvITs, (infrastructure investment trusts) which have more than $10 billion asset size as on today".
SEBI Chairman Ajay Tyagi said that there are some aspects on the issue that need to be further examined.
As per the framework, liquid funds will hold at least 20 percent assets in cash equivalents.
"The capital markets, globally, have been quite volatile during the current year and are likely to remain so in coming times on account of various factors such as US Fed rate hikes, volatile oil prices, intensifying trade conflicts and sanctions.
Further, the regulator is hopeful that changes made to the regulatory and tax framework for REITs and InvITs may show positive results going forward.
In another big development, ICICI Bank & Chanda Kochhar have applied for consent in the Videocon case.
It also said that call on the recommendations by fair market conduct committee to further strengthen the rules to deter financial crimes like frauds, market manipulations and insider trading, will be taken soon.
Ajay Tyagi commended the industry for achieving stellar growth, but said the Indian mutual fund AUM to GDP ratio was lower at 11 percent of GDP as compared to global standards.
The watchdog has been probing the alleged lapses in high-frequency trading offered through the National Stock Exchange's co-location facility.
Over the past one year, SEBI under Ajay Tyagi has followed through on long-pending reforms and take several policy decisions to their logical conclusion.