The SEBI (Securities and Exchange Board of India) has a proposal to start a Self-Regulatory Organisation (S.R.O.) for Financial Advisors (Broking Houses, Financial Advisory Firms, Finance Media etc.). What for? Anyway, the idea will not work.
It only shows that SEBI is trying to soft-pedal and shirk its own responsibilities. The GOI established SEBI because the Reserve Bank of India failed to regulate the Financial Advisers facilitating frauds by unscrupulous brokers like Harshad Mehta, Ketan Parekh. The Company Law Board, RBI, SEBI, Enforcement Directorate and numerous other organisations have sharp teeth to bite the Financial Advisors when the fraudsters are on the prowl. Yet, nobody does anything. A new institution is started whenever a scam takes place.
Associations and Chambers in India are like gambling houses dominated by big operators. Do they have any traits of self-regulation? They neither like self-regulation or regulation by others. Mr. Manmohan Singh has promised them de-regulation.
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