Sebi's (Securities and Exchange Board of India) board meeting is all set to take place today. For the market players, the meeting comes at a rather interesting time. On one side, the domestic stock market is experiencing a significant boom. Whereas, on the other hand, the regulator is grappling with the ongoing derivatives frenzy.
A recent Sebi study has already revealed that over 93 per cent of total investors (nearly 9 out of 10) suffer an average loss of Rs 2 lakh each.
Another development that investors are keenly watching out for is the introduction of a new market instrument, Mutual Fund Lite (MF Lite). According to various media reports, Sebi is expected to greenlight MF Lite. The new market instrument aims to bridge the gap between mutual funds and portfolio management services (PMS).
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Only those Mutual funds that are solely focused on managing passive schemes will be governed by the Mutual Fund Lite Regulations, as per the proposed framework.
'Conflict of Interest’ Allegations Loom Over Sebi Chief
The cloud of allegations continues to hang over Sebi chairperson Madhabi Puri Buch. Multiple media reports suggest that the board may address this issue in today's board meeting. The allegations come from Hindenburg Research, the US-based short seller. Even the opposition party, Congress has voiced concerns.
Since the last board meeting, if there is anything that has captured significant interest of market players and institutions, it is the growing tensions faced by Sebi. The US-based short seller alleged that Buch and her husband held investments in offshore funds managed by Vinod Adani, the brother of Gautam Adani. These funds were reportedly used to manipulate the stock prices of Adani firms.
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Besides this, the market regulator is also facing significant unrest from employees around shift hours and workplace conditions.
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