The Securities and Exchange Board of India (Sebi) chairperson, Madhabi Puri Buch, recently emphasized the importance of identifying and reporting market mischief within the industry. Speaking at a conference organized by the Association of Portfolio Managers of India (APMI), Buch highlighted the need for industry players to proactively report instances of mischief to the regulator. She stressed that early detection and reporting of such activities are crucial for the regulator to take timely action to maintain market integrity and stability.
According to Buch, if market mischief is left unchecked, Sebi may have to implement stricter regulations to curb unethical practices. She urged industry participants to collaborate and work together to eliminate malpractices that can harm investors and disrupt the functioning of the market. Buch noted that while fraud involves intent to deceive, mischief operates in a gray area where unethical practices may be carried out for personal gains.
The Sebi chairperson underscored that reporting misconduct is not only a regulatory requirement but also a moral obligation of responsible market players. Good actors in the industry stand to benefit from a transparent and ethical market environment, free from harmful activities conducted by bad actors seeking unfair advantages. Buch emphasized the significance of collective efforts from industry bodies like APMI to promote best practices and uphold standards in the portfolio management services (PMS) sector.
APMI, a reputable organization with approximately 450 members, plays a vital role in liaising with Sebi to foster a culture of compliance and professionalism in the PMS industry. By encouraging industry stakeholders to take a proactive stance against market mischief, Buch aims to instill a sense of accountability and ethics within the financial sector. The collaborative approach advocated by Buch seeks to create a level playing field for all participants and safeguard investor interests in the increasingly complex market landscape.