New Delhi, Oct 8 (KNN) Market watchdog SEBI has noticed and stopped instances where small insignificant private companies were being merged with the listed companies at a huge valuation primarily to provide gain to the promoters at the cost of other shareholders, said SEBI chief U K Sinha.

He was delivering the 19th JRD Tata Memorial Lecture under the aegis of the Assocham.

He pressed for checks and balances to ensure that in the name of accountability the very functioning of the regulators is not throttled.

He cited examples how in the course of SEBI's probes into the ponzi schemes, public interest litigations and criminal complaints were filed against the regulator. But, the courts, have played a commendable role in this regard. "Courts have shown remarkable maturity and restrain".  

As a strong votary of transparency in corporate India,  SEBI Chairman said regulators too "cannot escape the scrutiny of their working " as they are, in several cases, empowered as "mini states" with vast powers.

Sinha said, it was time to pause and think "whether we are creating too many institutions to ensure accountability or should we aim towards more accountability in more institutions".

He cautioned the large companies as well about the narrative of public accountability now extending to corporates; a phenomenon earlier restricted to politicians and bureaucrats.

He said whenever a large episode of misconduct is detected, a perception gets built about "regulatory capture" coming  in the way of effective action. (KNN Bureau)