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Sebi seeks more teeth to deal with Ponzi schemes

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India’s market regulator, the Securities and Exchange Board of India (Sebi), which completed 25 years on Friday, faces the challenge of attracting household savings from sceptical small investors into equities.

“Win confidence of small investors. It is when a small investor says my money is safe in the financial market because I have Sebi watching over my money,” said finance minister P Chidambaram (pictured) at a function to mark the milestone.

“We want Sebi to be a fearless regulator.”

Sebi chairman U K Sinha said one of the challenges the regulator faced was the unauthorised money collection under various schemes by different entities, referring to a spurt in Ponzi schemes in India, the latest being Saradha scam in West Bengal.

The chairman said as the last amendment to the Sebi Act took place way back in 2002, more strengthening of the law is overdue to deal with market manipulators.

Prime Minister Manmohan Singh, also present on the occasion, said the stock market was disproportionately focused on large-cap firms, while smaller and medium tier companies were losing the battle of attracting public capital to their bigger peers.

“For our growth story to be truly sustainable in the years to come, small and medium enterprises would need to become a key segment of the Indian economy. They must be facilitated and helped to grow and expand with greater ease,” he said.

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