SEBI keen on systemic solutions:Bhave

Chennai, Nov 5 : Securities and Exchange Board of India (SEBI) Chairman C B Bhave today said the regulator was keen on finding systemic solutions to the problems faced by the capital market.

Addressing a gathering at the launch of MSE-NSE tie up here, Mr Bhave said investors seldom understood the nuances of Power of Attorney and signed them without application of mind.

To overcome this, SEBI drafted a discussion paper and following the feedback, the proposals will be taken to the board.

"However, unless you (investors) refrain from signing what you don't understand, there is no solution," he said adding in such cases investor education played a vital role.

Similarly, the SEBI is examining the possibility of evolving a mechanism whereby the company can deduct only the actual amount of the value of the shares alloted to the investor from his bank account.

Also, investors find it convenient to keep a running account with brokers. Though it was convenient, complaints were coming and the SEBI was keen on finding a systemic solution, he said.

--UNI

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