- Financial Express
Sebi’s clean-up act
The Securities and Exchange Board of India’s (Sebi’s) latest reforms measures—16 of them—come at a time when the stock markets are on the edge. However, this is a good time to take the bull by the horns; that explains Wednesday’s slew of measures such as introduction of an Asba-like mechanism for secondary trades, removal of permanent positions in board seats, allowing private equity firms to become mutual fund sponsors, a backstop facility to help MFs during stress, and the new Environment Social and Governance (ESG) norms. Some of these measures will surely improve corporate governance. For example, the removal of permanence of board seats gives shareholders a larger say in deciding on the tenure of board members and gives the Nomination and Remuneration committees more teeth.