Key Points
In its judgment passed on 3 January, the Supreme Courtconcluded that there was no apparent inadequacy in the investigation by SEBI on the Hindenburg report, which had accused the Adani Group of stock manipulation and other financial misconduct last year..
While the main issue under consideration was regulations for identifying beneficial owners, the judgment also emphasised investor protection in financial markets, based on the recommendations of the Sapre committee, a six-member expert panel appointed on the Adani-Hindenburg case by the court...
As households turn to financial markets, the regulatory response will have to work towards aligning the interests of the sellers and buyers toensureconsumer protection...
This brings us tothe committeesrecommendation on financial literacy. Itnotedthat financial literacy should be introduced in school curriculato ensure that general numeracy and familiarity with financial products is inculcated at a young age.However, how best to designsuchcurricularemains a challenge..
At the point of sale, the story is about how sales staff is remuneratedflat fees and trail commissions seem to work better than large upfront commissions.Ahigh upfront commission leaves no incentive to the seller to stay with the customer through the long tenure of products such as mutual funds or insurance..
