Securities Exchange Board of India (SEBI) has announced that it is forming a fintech advisory committee to mobilize household savings into financial markets with the technology solutions.
The announcement was made by SEBI chief U K Sinha during the 11th Digital India summit hosted by Internet and Mobile Association of India (IAMAI) in New Delhi. Sinha said that there will also be a new framework for the listing of security receipts that are issued by asset reconstruction companies on stock exchanges in the next financial year.
“To harness technology to enable persons in small towns with small amounts to invest in a retirement fund, we are going to form an advisory committee on fintech that will be led by some very strong business leaders from the industry,” Sinha stated, as reported by The Hindu. “I hope this committee will help us spread the market and mobilize domestic household savings for the growth of the country by way of providing risk capital as well as debt investments.”
The committee will include experts and representatives from various sections of the fintech industry. The fintech team will also examine ways to facilitate crowdfunding of ventures that are genuine and the regulator has concerns on letting anonymous entities to raise funds without any safeguards.
The board is having talks and holding discussions with representatives of startups and VC funds. Also, according to Sinha, the committee was created after various rounds of discussions and realizing that several large tech startups were going to mature soon.
“We have started discussions to understand if it’s a question of where the economy is, timing or maturity of start-up businesses or something in our norms for listing,” he added.
