3 weeks ago
Government likely to retain one-year cooling-off for Sebi brass
In India, there is a group called SEBI that makes sure the stock market is fair.
The people in charge of SEBI are called the chairperson and whole-time members.
Right now, after they leave SEBI, they have to wait one year before working for a company they once watched over.
A special committee said they should wait two years instead.
But the government thinks one year is enough.
It says waiting too long makes it hard to find good people to do the job.
The same committee also wanted new rules for cryptocurrencies, which are digital money.
The government does not plan to make those rules.
It thinks cryptocurrencies are risky because they are not backed by real things.
In India, people still have to pay taxes on their cryptocurrency, even though there are no special rules for it.
The government is likely to retain the one-year cooling-off period for Sebi chairperson and whole-time members before they join market participants.
A Parliamentary panel had proposed extending the cooling-off period to two years, a change the government is unlikely to accept.
The government is also unlikely to act on the panel's recommendation for a statutory and regulatory framework for virtual digital assets or crypto assets.
Official sources said a longer cooling-off period would make it harder to attract suitable private-sector candidates to the Sebi board.
Cryptocurrencies are covered under India's tax net, but the country has no dedicated regulatory regime for them.
- Who
- The Government of India, the Securities and Exchange Board of India (Sebi), the Standing Committee on Finance, and market participants
- What
- Government likely to retain one-year cooling-off for Sebi top brass and to skip a crypto regulatory framework
- Where
- India
- When
- After the panel's report was tabled in Parliament on July 23; decisions reported as current
- Why
- A longer cooling-off would make it harder to attract candidates; VDAs are seen as not backed by real assets and a threat
Parliamentary panel
Government
Cooling-off period for Sebi officials
Parliamentary panel
Extend the cooling-off period from one year to two years before Sebi's chairperson and whole-time members can take up positions with market participants.
Government
Retain one year; a longer period would make it harder to attract suitable private-sector candidates, and market participants cautioned against the move.
Regulating virtual digital assets
Parliamentary panel
Comprehensively examine the need for a statutory and regulatory framework for VDAs, and consider recognising a self-regulatory organisation for VDA service providers.
Government
No plans to introduce a regulatory framework for VDAs, as they are not backed by real assets and are viewed as a threat.
Key facts
- Regulator
- Securities and Exchange Board of India (Sebi)
- Current cooling-off period
- One year (likely to be retained)
- Proposed change
- Two years (Standing Committee on Finance recommendation)
- Report tabled
- July 23 in Parliament
- Virtual digital asset framework
- No government plans to introduce one
- Panel's VDA suggestion
- Examine statutory/regulatory framework and consider recognising an SRO for VDA service providers
- Crypto tax status in India
- Covered under the tax net; no dedicated regulatory regime
Sources
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