Speaking on the sidelines of the CII flagship 10th Financial Markets Summit in Mumbai, Sebi chairman Ajay Tyagi, said the regulator was looking into the matter of Infosys whistleblower case. He also said Sebi would soon come out with the preferential allotment circular with regard to InvITs. Edited Excerpts:
Recently Infosys chairman Nandan Nilekani said even the God can’t change number of this company. What is your views on the same? Have you shared any information with the US Securities and Exchange Commission (SEC)?
You should ask him or the God. I've nothing to say and investors should draw their own conclusions. Yes, we are looking into the matter and whatever we have to do, we are doing. Whatever is the outcome you would come to know. Regarding the SEC, that is something confidential between two regulators.
Over the past few years, Sebi has been reducing the expense ratio on mutual funds, affecting income of MF distributors. While it if good for investors, but India is still not a mature market where financial products are still sold instead of being bought. How do we fix this?
If you put yourself in place of investors, how would you feel that the total expense ratio (TER) has not been transparently disclosed, or it is charged upfront if there is a lot of churning. So this is something which had to be done. In my perception, the MF industry which has grown from Rs 11 lakh crore to Rs 25 lakh crore in five years because of trust, faith and self regulations by MFs. I will not give that much credit to Sebi except that last one year, we had to intervene in debt mutual funds and we found the anomalies.
Considering InvITs were envisaged to democratise ownership of Indian assets and to channelise Indian savings, when can we expect Sebi to release rights issue guidelines which allow retail investors to participate along with institutional investors?
We are looking into two issues-one is the preferential allotment and the other is rights issue. We will first come out with the preferential allotment circular and then a rights issue circular, which we are currently examining. We are quite positive and proactive on this.