The Hindu Business Line : JPC may seek `lead' market regulator

THE Joint Parliamentary Committee (JPC) investigating into the capital market scam of 2001 may suggest to the Government to set up a ``lead regulator'' for the capital market to plug the regulatory loopholes.

Confirming this to Business Line, Mr Nilotpal Basu, a JPC member and member of the Rajya Sabha, said, ``A consensus is emerging among committee members that only such a regulatory body with appropriate powers can take care of the grey areas existing in the present system of monitoring the capital market and its various players''.

The stock market regulator, the Securities and Exchange Board of India (SEBI), may be asked to play the lead regulator's role after a reorganisation of responsibilities and addition to its powers. Mr Basu indicated that JPC was unlikely to recommend creation of a completely new organisation as the lead regulator.

The process of arriving at a conclusion over fixing responsibility for the irregularities and drafting suggestions for future regulation of the capital market, including foreign entities in the Indian market and the Unit Trust of India, for the final report will begin from August 26.

The report will be based on the working paper prepared by the committee secretariat and individual member's notes. The final report will also take into account the Tarapore Committee report, SEBI and RBI reports and the depositions.

The committee is readying to submit the final report by the end of the winter session of Parliament (by December-end) following the extension of the deadline.

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