Sebi mulls dropping word ‘penalty’ in actions against brokers to avoid stigma: Varshney

Mumbai said on Monday that the word “punishment” is too much stamped and the capital market regulator has reduced reference to incorrect brokers on Monday.

The regulator also speaks in the process of rationalization of penalties, in the event of initiation of Proxy Advisory Suggestions in the E-Posting System in Investor Applications.

“You know that many of them are not actually punishment. And a stigmatization when imposed on the broker unnecessarily. So can we have a better name?” Varshney said.

The Industries Standard Forum (ISF) said that over the last five months, it has negotiated with the intention of doing business measures on issues surrounding the broker industry.

Varshney, some of the problems discussed last Saturday, the new Delhi in a meeting between brokers, NSE and Sebı officials in the new Delhi, and an announcement is very soon, he added.

“Each of us is now pleased that we can progress now and at least the first stage of this rationalization should be very soon.” He said.

Sebi said he expects to make a stock market as a nodal authority to implement penalties.

WTM also has a move to offer a system in which brokers share their data to a single portal instead of multiple portals.

Authorized, regulatory, the Ministry of Finance also discusses other aspects of the ease of doing business for the broking industry.

Varshney welcomed the launch of the new facility launched in both CDSL and NSDL, and said that investors can now choose to read every opinion of deputy advisory companies and vote accordingly.

This is a big step for corporate governance, he added.

Varshney said he advised Tuhin Kanta Pandey, the President of Sebi, who took over in March this year, to ensure that the staff would have an optimum arrangement.

He said that the measures related to the ease of doing business should go with the execution and that there should be a subtle balance between the two.