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SEBI Restructures its Advisory Committees on Secondary Markets, Mutual Funds, Corporate Bonds

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Sebi overhauls advisory committees on secondary mktsSecurities and Exchange Board of India (SEBI) has restructured its advisory committees that include the secondary market, mutual funds, corporate bonds and securitisation, and Information Systems.

a.Secondary Market Advisory Committee (SMAC):

Member – 17 Members

Current Chairperson – Madhabi Puri Buch, ex-whole time member of SEBI

Key points:

i.New Members – SEBI rearranged the committee with Zerodha’s co-founder and chief executive officer (CEO) Nithin Kamath as newly inducted members of the panel.

  • Earlier, the panel was headed by IIM Ahmedabad professor and former whole-time member of SEBI, Jayanth R Varma along with other members in the panel.

ii.Other Members –  Dhiraj Relli, MD and CEO of HDFC Securities; Kaku Nakhate, President and Country Head India at Bank of America; Naresh Yadav, MD and CEO of SBICAP Securities; and Leo Puri, President, JP Morgan, South and Southeast Asia.

iii.Role of the Committee – The panel advises the regulator on matters related to the secondary market, including suggesting steps to improve market safety, efficiency and transparency.

b.Advisory Committee on Mutual Funds:

Members – 24-members

Chairperson – Usha Thorat, former deputy governor of the Reserve Bank of India (RBI).

Key Points:

i.New Members – SEBI has inducted Navi Asset Management Company MD and CEO Saurabh Jain, Morningstar India MD Aditya Agarwal and The Hindu Business Line consultant editor Aarati Krishnan as new members of the committee.

  • Franklin Templeton Asset Management (India) Pvt Ltd President Sanjay Sapre and Kotak Mahindra AMC MD Nilesh Shah will no longer be part of the committee.

ii.Other Members – Tata Asset Management MD and CEO Prathit D Bhobe; Vinay Tonse, Managing Director and CEO of SBI Funds Management; Swarup Mohanty, CEO of Mirae Asset Investment Managers (India); and Sundaram Asset Management Company MD Sunil Subramaniam.

iii.Role of the Committee – The advisory committee shall advise SEBI on issues related to regulation and development of the mutual fund industry.

c.Corporate Bonds and Securitization Advisory Committee (CoBoSAC)

Members – 23-members

Chairperson – The Committee would be headed by G Mahalingam, former Whole Time Member, SEBI.

Key Points:

i.Other Members – The other members of the panel are Nilesh Shah, director of the Association of Mutual Funds of India (Amfi); Ramnath Krishnan, MD and CEO of ICRA Limited Group; Navneet Munot, MD and CEO of HDFC Mutual Fund; and SV Sastry, Deputy Managing Director, Global Markets at the State Bank of India (SBI).

ii.Role of the Committee – The panel will advise Sebi on implementing the ‘High-Level Committee on Corporate Bonds and Securitization’

  • This implementation could suggest steps for addressing the operational and systemic risks which may occur in the market for corporate bonds and securitised instruments.

d.Information Systems Security Committee (ISSC):

Member – 5 members

Chairperson – The committee would be headed by Prof H Krishnamurthy, Principle Research Scientist, IISC Bangalore.

Key Points:

i.Other Members – G Sivakumar, Professor of IIT Bombay; D Sivanandhan, ex-DGP, Maharashtra Police; Avneesh Pandey, CGM-IT at Sebi; and Manojan Karayi, Chief Information Security Officer (CISO) of Sebi 

ii.Role of the Committee – The committee will be responsible for approving information security policies and also reviews the implementation of the cyber security and resilience policy.

  • It also provides inputs, suggestions and recommendations to SEBI CISO on any urgent actions regarding cyber security incidents of SEBI and SEBI – regulated entities.

Recent Related News:

The SEBI has introduced swing pricing for open-ended debt mutual fund schemes (except overnight funds, Gilt funds and Gilt with 10-year maturity funds) to protect large investors from sudden redemption and ensure fair treatment in open-ended mutual fund schemes.

About Securities and Exchange Board of India (SEBI):

Chairperson – Ajay Tyagi
Established – 12th April 1992, in accordance with SEBI Act, 1992
Headquarters – Mumbai, Maharashtra