20 June 2008

SEC & SEBI appointments

Seems like we are not the only ones who must endlessly wait for new (whole time) Board members of the securities regulator to be appointed. Though we don't have the same excuse as the Amercians – they must fight a partisan parliament to confirm the 5 year appointments. Peculiarly, and increasingly so, Securities and Exchange Commission's (SEC) commissioners carry their partisan (and politically affiliated) views to the regulatory philosophy they bear upon and often vote consistent with such 'politically' correct views. Thank god for small mercies.


Unknown said...

I am sure this idea may not sound nice and go well with the concerned people....but atleast one experienced,professionally qualified broker (recently retired...probably!) should be a whole time director - with proper checks and balances if necessary; They are in touch with the markets and its manipulative tactics. their expertise can be put to better use by the regulator. probably the movie " catch me if you can" tells the same thing!

Sandeep Parekh said...

I fully agree - someone with credibility in the broking sector, or someone who is semi-retired or retired would do a great job.

In fact the first US SEC Chairman, Joseph Kennedy, was a rouge trader who engaged in every kind of manipulation and financial misconduct. When someone asked F D Roosevelt 'but he's a crook, why did you appoint him?'. His reply was classic 'It takes a crook to catch another'.

But I think, the relevant authorities may not be averse to the idea if the name of someone with the relevant experience crops up.