Mumbai: Minister of Finance Nirmala Sitharaman on Tuesday asked the Sebi market regulator to become a guardian of possible volatility in the domestic market because of the US Federal Reserve’s decision to increase interest rates in the world.
FM also asked the SBI to start the next generation of market reforms to increase the ease of doing business, the release of Sebi noted.
FM appreciates the initiative taken by the regulator and emphasizes the need to take further steps to reduce compliance loads, reduce market intermediation costs, and strengthen investor protection initiatives.
He further asked SBI to advance to develop the corporate bond market and developed green bonds in the context of increasing focus on investment ESG (environment, social & governance).
FM met the regulatory board for the first time after presenting its budget in February 1.
It was custom for FM to overcome the Sebi and RBI boards after the annual budget.
FM comments about the possibility of market turbulence coming up with the background of the US Fed Announcement earlier this month will raise interest rates in March and also likely to move to reduce the balance of swollen.
This can terminate the easy money regime in the US and the Fed’s decision is expected to affect funds flowing into developing country markets, including India.
During a meeting with FM, Chairman of the Sebi Ajay Tyagi gave a briefing to the Minister about the main trends and prospects of the Indian Securities market, including fundraising activities and increased individual investor participation, said release.