Seeking a review on the Budget proposal that mandates transferring 75 percent of the market regulator’s surplus funds to the Central Government, Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi has written to the finance ministry.
Tyagi in a letter to the ministry on July 10 said that “the proposed move, part of the Finance Bill, 2019, would affect the functioning of SEBI as well as the securities market. The proposal was already being discussed by the Financial Stability and Development Council (FSDC), the regulator for the financial sector, and that the amendment to the SEBI Act, through the Finance Bill, could have waited until the Council’s final decision.”
He also argued on the rationale for the regulator keeping a reserve fund and its importance in protecting the interests of investors.
