Global body Iosco flags challenges to operational independence

Iosco says Sebi in line with all its principles but one

The International Organisation of Securities Commissions (Iosco) has said statutory powers vested with governments to direct their securities regulator are in contravention of one of its five principles. It has called for governments to reconsider the appropriateness of their powers to direct market regulators in five jurisdictions, including India.

The worldwide association of securities regulators on Wednesday published the Iosco Standards Implementation Monitoring (ISIM) report, which is based on self-assessments submitted by the 55 member regulators, including the Securities and Exchange Board of India (Sebi).

The association has acknowledged Sebi for good practices on several counts, but has flagged the issue of