Finance Minister Nirmala Sitharaman on Tuesday asked market regulator Sebi to introduce next-generation reforms to enhance ease of doing business and be prepared to deal with any volatility in the market due to the steps of the US Federal Reserve.
Addressing the Board of Directors of the Securities and Exchange Board of India (SEBI), Sitharaman praised the steps taken by the regulator. He said a lot needs to be done to protect the interests of investors, besides reducing the compliance burden of regulations, cost of market arbitrage.
He also asked SEBI to strengthen the corporate bond market and make efforts towards development of green bond market. With the increasing emphasis on environmental, social and governance (ESG) investments by companies, it has become necessary to address these aspects as well.
The Finance Minister said, “Sebi will have to bring in the next generation reforms to improve the ease of doing business. Apart from this, it will also have to be prepared to deal with the impact of the steps taken by the US Federal Reserve on the market.
Actually, the US central bank can decide to change the Federal Reserve policy interest rates. After inflation in the US reached a four-decade high, there are fears of a hike in policy rates. This move can also have a strong impact on the Indian market.
During this meeting, SEBI Chairman Ajay Tyagi also apprised Sitharaman of the scenario and key trends in the Indian securities market. Apart from this, the Finance Minister was also informed about the fund raising activities and increase in the participation of private investors.
As per convention, after the Budget, the Finance Minister meets with the Board of Directors of the Reserve Bank of India and SEBI. Sitharaman also spoke to the board of directors of the Reserve Bank last day.