Why is SEBI’s credibility under a cloud

1. Lack of timely and effective enforcement actions against market manipulators can raise doubts about SEBI's commitment to maintaining market integrity. 2. Allegations of regulatory capture, where the regulator's decisions are perceived to be influenced by the industry it oversees, can erode SEBI's independence and credibility. 3. Inconsistencies in regulatory decisions and ambiguous communication regarding policies may lead to confusion and undermine trust in SEBI's regulatory framework. 4. Instances of fraud and scams going undetected or inadequately addressed by SEBI could suggest inefficiency in its surveillance and oversight mechanisms. 5. Perceived leniency towards powerful market players or lax enforcement against violations can create an impression of favoritism and weaken SEBI's credibility among stakeholders.