The media reports suggest that there is a potential danger to the continued independent functioning of Securities and Exchange Board of India (SEBI). There are rumours the SEBI’s fate is going to be like that of the Reserve Bank of India (RBI), the Central Bureau of Investigation (CBI), etc. The industry and trade organisations are expressing concern over the potential dangers involved in removing the autonomy of SEBI.

The Modi government is bringing in guidelines to make SEBI answerable to a committee for all its actions and decisions in the process of regulating the securities exchange market. No definite clues are available as yet about the scope and structure of this committee. As the constitution of this committee is certainly going to be influenced by the Centre, there are fears it is bound to bring in intervention and influence from the top.

Similar attempts were already made to make the RBI answerable to the government. The RBI was asked to inform the government any decisions it takes to regulate the banking system. There are many controversies surrounding this and the RBI has continued fighting against the outside influence since then. Already, Modi’s rivals are criticising him for crushing central and democratic institutions.

G.Ravikiran