MEASURES FOR STRENGTHENING THE ENFORCEMENT MECHANISM IN RESPECT OF INTERMEDIARIES REGULATIONS BASED ON JUSTICE DAVE COMMITTEE REPORT

Abstract

In order to protect the interests of the investors, the Securities and Exchange Board of India shall initiate remedial and punitive action against the delinquent intermediaries efficiently and in a timely manner for the effective regulation of the securities market.  On  the  basis  of experience gained in the enforcement proceedings against the intermediaries so far, it is felt  that  the  current  process  under  the  SEBI  (Intermediaries)  Regulations,  2008  is unjustifiably drawn-out and hence needs to be reviewed. The fact that intermediaries owe a fiduciary duty to the investors unlike other market participants, underscores the need for proceedings against the intermediaries to be conducted and concluded in a timely fashion. Hence, Justice Dave Committee was created to avoid duplicity of proceedings, delete obsolete provisions and provide with up to date regulations. The present paper will throw light on measures suggested by the committee for strengthing Intermediaries Regulations. The author will further provide logical reasoning for the same.