SEBI’s Kamlesh Chandra Varshney steps up action against fraudsters
SEBI’s Kamlesh Chandra Varshney steps up action against fraudsters
The regulator is broadening its reach to universities and schools to empower investors to make the right choices
The Securities and Exchange Board of India (SEBI) has stated introducing reforms to enhance market integrity, facilitate large initial public offerings (IPOs), and strengthen investor protection against manipulation and fraudulent practices.
Kamlesh Chandra Varshney, SEBI’s Whole-time Director, said the regulator has floated a consultation paper proposing to extend the deadline for achieving 25 percent public shareholding to 10 years for exceptionally large companies, instead of 5 years. The relaxation will make large IPOs such as the National Stock Exchange more feasible.
He added that the market regulator advised merchant bankers and anchor investors to adopt realistic and conservative valuations in 9nitial public offerings (IPOs) to avoid post-listing price erosion that could dent the confidence of retail investors.
Meanwhile, the regulator is also intensifying its action on unregistered investment advisors and financial influencers who mislead retail investors through social media. A monitoring team is flagging illegal posts on Google and Meta, which are being taken down within hours.
The SEBI official said the regulator has associated with Meta for an ad verification process to ensure that only registered entities promote market-related content. This would be extended to other platforms.
Varshney added that action was being taken against violators, including TV experts and penny stock manipulators. He clarified that SEBI had no objection to genuine educators but would act against persons who guised and provided unregistered trading advice or lured investors with false promises.
He informed that taking investor education to the next level with campaigns and outreach programs in universities and schools, SEBI intends to empower investors to distinguish genuine advisors from fraudsters and make the right choices.
