Indian market regulator all set to retain Chairman
February 12, 2016, 2:39 pm

File photo of current chairman of Securities and Exchange Board of India, U.K. Sinha [Image: SEBI]

His current term ends on February 17.

The Indian Prime Minister’s office is expected to clear his appointment soon, sources told The BRICS Post.

In 2010, Sinha had also headed an advisory committee on foreign investment.

He was appointed as chairman of the Indian market regulator in February 2011.

Sinha said last month that Chinese slowdown concerns have posed a new challenge for India and raised uncertainty over the country’s growth.

He noted that while previously the challenges were Greece and European Union now the biggest challenge is China.

The Securities and Exchange Board of India last month lowered the amount of corporate debt that mutual funds can hold in individual companies and sectors to prevent investors from potentially damaging over-exposure.

The rules are in response to market turmoil last year when a unit of JP Morgan in India suffered significant mark-to-market losses after a big investment in the debt by Amtek Auto Ltd soured when the auto parts maker was downgraded by rating agencies.

Earlier in October, SEBI chief Sinha had called for the industry to be more careful with investments and procedures saying the Indian regulator will increase surveillance of mutual fund investments in corporate debt.

SEBI would also look at whether there were any conflicts of interest in the ratings process, he announced.

Global funds have pulled $2.1 billion from local shares this year as investors turn averse to riskier emerging-market assets.

India’s gross domestic product will grow 7.6 per cent in the year through March, the government forecasts, overtaking a slowing China to be the world’s fastest-growing big economy.

Growth, however, is still below the country’s medium-term potential and structural reforms are needed to boost expansion without stoking inflation, Indian Central Bank governor Raghuram Rajan said this month.

Disappointment over corporate earnings and global risk aversion have led Indian equities into a bear market this week.

The broader Nifty closed the week down 6.78 percent. The benchmark BSE Sensex lost 6.62 per cent on the week.

Both indexes posted their biggest percentage declines since July 2009.

Pooja Bhansali in New Delhi, India for The BRICS Post