Updated 20:32 IST, July 4th 2024
Sebi Chairperson urges market participants to report wrongdoings
Reflecting on her own experience in the industry, Buch noted the frustration felt by law-abiding participants when peers benefit from unethical practices.

Report wrongdoings: Sebi chairperson Madhabi Puri Buch on Thursday called on market participants to report any misconduct in the capital markets. Speaking to portfolio managers, the banker-turned-regulator emphasised that reporting wrongful conduct is in the "self-interest" of market participants.
Buch underscored the regulator’s priority to act swiftly on any misconduct before it escalates into a systemic issue, necessitating stringent regulations. "Urge the association to bring forth to the regulator any instances of mischief in the market that are going on, so that the regulator can take early action and not wait until it explodes in the system and then we have to come back with a heavy hand," she stated.
Reflecting on her own experience in the industry, Buch noted the frustration felt by law-abiding participants when peers benefit from unethical practices. "Good guys need to win. You guys need to tell us about what mischief is going on so that we can stop it early on. It's in your own self-interest to come and tell the regulator what are some of the bad practices happening in the market," she said.
Buch pointed out that misconduct erodes trust, leading to prolonged rebuilding efforts and prompting strong regulatory responses. She stressed the importance of maintaining trust within the financial ecosystem, warning that its loss could lead to a collapse of the system.
She advocated for regular dialogue with the regulator, highlighting that this approach aims to co-create rules and is driven by self-preservation rather than magnanimity. Regarding portfolio managers, Buch affirmed that Sebi views the industry as operating between mutual funds and alternative investment funds, and this hierarchical view will remain unchanged.
(With PTI inputs)
Published 20:22 IST, July 4th 2024