SEBI’s transfer of surplus to government raises more questions than answers

My new article in Moneycontrol.

I had pointed earlier that the SEBI is being asked by the government to transfer its surplus to latter.

Apparently, the Government has gone ahead with the proposal in the recent Budget. The article discusses this new proposal.

It has proposed an amendment in SEBI Act (1992) in the Finance Bill under which SEBI will now transfer 75% of its surplus to the Government. In a way this is not new, as SEC also transfers funds to the government.

Based on SEBI’s numbers, the transfer amount is too small and may not matter. But that is not the point. Ideally, government should have discussed this in the speech or bring to notice in some other way. It is buried in fineprint of Finance Bill which is again a case of using Money Bill for important policy changes.

The move opens up familiar questions which we ask when such actions are taken in case of central bank.

Much more in the piece.

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