Why is SEBI's credibility currently being questioned

Explain the factors leading to the cloud of doubt surrounding the credibility of SEBI in recent times.
  • Inconsistencies in regulatory decisions: SEBI's handling of high-profile cases has raised concerns due to perceived inconsistencies in its regulatory decisions.
  • Delayed actions: There have been instances where SEBI has been criticized for delays in taking actions against market manipulations and insider trading.
  • Lack of transparency: Stakeholders have raised concerns about the lack of transparency in SEBI's decision-making processes and the rationale behind its actions.
  • Conflict of interest: Allegations of conflicts of interest involving SEBI officials and market participants have also contributed to the questioning of SEBI's credibility.
  • Effectiveness of enforcement: Questions have been raised about the effectiveness of SEBI's enforcement actions in deterring market misconduct.
Answered 8 months ago
Mohit Preparing for Civil Services