How does Sebi compare with its US counterpart, the Securities and Exchange Commission (SEC)?
The superiority of the SEC stems from its elaborate surveillance mechanisms and stringent disclosure norms. In somecases, the SEC also has greater powers than Sebi. The SEC has arrested fraudulent traders. It can even question banks. Back home, we talk of levying penalties on guilty brokers. Sebi wanted the fine on fraudulent brokers and intermediaries to be hiked from Rs 5 lakh to Rs 15lakh. But isn t this a mere fleabite for a trader or broker who deals in crores of rupees every day? In order to protect the interests of investors, more severe action is called for, like cancellation of cards of brokers. But how many times has Sebi done this so far? The SEC has been known to impose hefty fines on defaulters. Moreover, the rules are the same for all, be it a Merrill Lynch or Salomon Brothers the SEC is not scared of the big players. The situation is quite different in India. TheUTI, a big market player whose deals can move the market, has been kept out of the Sebi net. Do you think circ
