With an aim to strengthen its market oversight and policymaking capabilities in the wake of fast-changing market dynamics, SEBI has begun the process of an overhaul of its own functions and organisational structure.
The capital market watchdog is of the view that a turmoil in the global financial markets in recent years and emergence of a number of new market segments have brought to fore newer challenges and the need for a stronger regulatory mechanism.
The proposed move comes after a leadership change in SEBI in February, followed by changes in various board-level and executive director positions, and restructuring of a number of its advisory committees in the recent past.
A proposal has been already discussed by the SEBI board to revisit various structural and organizational issues, re-prioritize areas of its focus and look at its technological and manpower needs.
To start with, the regulator has decided to strengthen its research and economic policy teams with the appointment of a Chief Economist. This would be followed by SEBI engaging an external consultant to recommend changes in its roles, functions, vision and organisational structure.
Subsequently, SEBI aims to set up an International Advisory Board to guide it while framing policies to meet the challenges emerging from various global market developments.
After the external advisor makes recommendations on changes in SEBI’s organisational structure, human resources, technology and its regulatory and oversight roles, those would be taken up with the central government agencies for further implementation, an official said.
The areas where SEBI is looking up for major changes include use of latest available technologies, incentives to attract and retain talent and acquiring expertise for dealing with complexities associated with various market segments.
SEBI last went through an organisational restructuring in 2003 and the market has gone through a sea change since then.
The proposed International Advisory Board could meet twice a year to assess the trends in global markets and to guide the activities towards meeting the emerging challenges.
Besides, SEBI also plans to organise brain storming sessions with international and domestic experts, including its own past chairmen.
Of late, global developments have become key to movements in domestic market and SEBI feels that it has become important to keep a track of global developments and trends.
SEBI has told its board that the events related to the recent global financial crisis have highlighted the need for continuous assessment of various developments and an immediate regulatory response.
