Madhabi Puri Buch Champions Your Voice: Empowering Investors Through Mutual Funds – Top Stories
Sebi Chair Urges Mutual Funds to Amplify Retail Investor Voices and Boost Corporate Bond Market
Last Updated: Sep 26, 2024 | 8:56 PM IST
Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (Sebi), emphasized the importance of mutual funds utilizing the stewardship code to ensure retail investors’ voices are heard at general meetings of investee companies. Speaking at the launch of Bharat Nivesh Yatra by the Association of Mutual Funds of India (Amfi), Buch urged the industry to boost retail investor participation and become their voice.
Buch highlighted the mutual funds’ role in financial inclusion and wealth creation for citizens, underlining the industry’s "sovereign trust" earned over the years. She pointed out that despite the stewardship code’s adoption, retail investors often do not vote in annual general meetings (AGMs) and lack consolidated power to influence corporate decisions. Buch urged the industry to work towards ensuring these investors’ voices are heard.
Addressing recent controversies and allegations of conflicts of interest, Buch, alongside her husband Dhaval Buch, denied any wrongdoing, refuting accusations from Hindenburg Research and the Congress party.
On the corporate bond market, Buch detailed initiatives aimed at increasing participation, such as enhancing transparency, regulatory clarity, and online bond platforms for retail investors. She noted progress in the primary debt market, although challenges remain in the secondary market. Awaiting Reserve Bank of India (RBI) approval, the AMC Repo Clearing (ARCL) could see increased trading volumes, having already surpassed Rs 20,000 crore in monthly turnover. Current participation restrictions stem from ARCL not being classified as a Qualified Central Counterparty (QCCP), pending RBI approval.
Buch also mentioned Sebi’s measures to expedite approval processes using artificial intelligence (AI), aiming to streamline regulatory operations.
First Published: Sep 26, 2024 | 8:56 PM IST
Original Story https://www.business-standard.com/markets/mutual-fund/sebi-chair-madhabi-puri-buch-urges-mfs-to-make-investors-voice-heard-124092601204_1.html
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