SEBI to channelise household savings into capital market
Published: Feb 10, 2017
By TIOLCORP News Service
NEW DELHI , FEB 10, 2017: WITH the aim to give a fillip to technology-based solutions, the Securities and Exchange Board of India (Sebi) announced the formation of an advisory committee on financial technology (fintech) issues to enable more mobilisation of domestic savings into the financial markets.
The Chairman of Sebi U.K.Sinha, while speaking at the 11th India Digital Summit, organised by the Internet and Mobile Association of India( IAMAI) said that to harness technology to enable persons in small towns with small amounts to invest in a retirement fund, SEBI is going to form an advisory committee on fintech that will be led by some very strong business leaders from the industry. He further said there is a huge potential for channelising household savings into capital markets for growth of the country and the committee will help in achieving this goal.
On the importance of harnessing technology, he said given that technology is dynamic, Sebi has to move fast and realign with the changing times.
Reiterating the importance of convergence of policy and the regulatory agencies, Sinha said that he endorses the draft Indian Financial Code (IFC) and believes that there has to be an ongoing dialogue with the industry to move forward.
Fintech companies deal with a lot of financial institutions like mutual funds, insurance and payment entities. However, there is a difference in them in terms of different policies and regulations.
The advisory committee will also examine the best way forward to facilitate crowd funding of genuine ventures, the Sebi chairman said, adding that the regulator has concerns about letting anonymous entities raise funds without any safeguards. He further said this committee will help to address the issues and mobilise domestic savings, which will spur growth of the economy.
