A New India
Chapter 190 - 190: Discussion Continued

The room quieted as they waited for Rohan to introduce the next act.

"Gentlemen," Rohan began, clearing his throat, "I know we've spent the better part of the day addressing regulation but this issue is important that demands our attention before we adjourn."

He laid a new file on the table. Everyone started going through the files.

"Our financial markets have grown in size, complexity, and influence," Rohan continued, his voice steady. "But with that comes danger. Those in privileged positions those with access to sensitive information must be regulated, or we risk market chaos."

Harish nodded, but there was a hint of caution in his expression. "Sir, insider trading is something even more advanced markets struggle with. Are we certain we can manage this effectively?"

Rohan flipped open the file and began to lay out the Insider Trading and Market Manipulation Prevention Act blueprint.

"The Securities and Exchange Board of India (SEBI) will be the primary enforcement body, of course," Rohan said. "The act will give them the authority to track and monitor suspicious activities in real-time. More importantly, it will empower them to investigate suspected violations, freeze assets, and enforce penalties. We have to make insider trading too risky to be worthwhile."

Suresh adjusted his glasses, carefully reviewing the document. "Sir, the framework is sound, but we must address the nature of whistleblowers. We know how tight-lipped people in these circles can be. Shouldn't we consider a provision that not only protects but incentivizes individuals who expose insider trading?"

Rohan looked pleased. "Exactly what I was thinking, Suresh. Whistleblower protection will be essential. We can't have people afraid to come forward. Those who disclose market irregularities will be shielded from retaliation, and we will even offer financial rewards, 10% of the fines collected as a result of their information."

The council members exchanged glances. Rajendra Singh, who had been quiet for most of the meeting, leaned forward.

"Sir, this act covers a wide range of violations. Insider trading, yes, but market manipulation as well. Manipulation whether it's pump-and-dump schemes, front-running, or cornering can destroy investor confidence. Can we adequately police all of this?"

Rohan flipped to another section of the document. "We have no choice but to regulate manipulation with the same intensity as insider trading. SEBI will monitor stock movements for unusual patterns—

any attempts to inflate prices artificially, rig volumes, or create scarcity to manipulate the market will be met with severe penalties."

Harish glanced up from his reading. "Sir, speaking of penalties you're proposing some rather steep fines. Up to three times the profit or loss avoided? That's bold, but can we enforce this?"

"We must," Rohan replied firmly. "Without significant penalties, the act won't deter anyone. And it's not just fines. For willful violations, there will be criminal consequences. We're talking about up to ten years imprisonment for those found guilty of market fraud."

Harish took a deep breath. "That will certainly send a strong message."

"That's the point," Rohan said, his eyes meeting Harish's. "Our goal is to not only punish those who commit fraud but also to make the cost of engaging in these activities far outweigh the potential benefits."

Rajender spoke "Sir, how will we handle market surveillance? We'll need resources to monitor the exchanges, and it's not just about catching people in the act. We need to maintain confidence in the system, people need to know that they're being watched."

"Good question," Rohan said, nodding in approval. "The act establishes a Market Surveillance Division within SEBI. They'll there to monitor any irregularities and investigations into unusual patterns also the authority to subpoena records from banks, brokers, and companies."

Suresh nodded thoughtfully. "And what of the appeals process? We can't forget that some individuals may be falsely accused or face overreach from regulators. How will we ensure a fair trial?"

Rohan flipped to the last section of the blueprint. "There will be an appeals process through the Securities Appellate Tribunal (SAT). Anyone aggrieved by SEBI's orders can take their case to SAT within 60 days of receiving the decision. SAT will have the power to modify, uphold, or annul SEBI's actions, based on the evidence."

The room was silent for a moment, everyone's was still going through the file properly.

Harish, also going through the document, finally looked up.

"This act, sir," Harish began, his voice more thoughtful now, "will fundamentally change how our markets operate. It's bold and comprehensive, but it will need the support of not just SEBI but every stakeholder in the financial ecosystem."

Rohan gave a nod of agreement. "That's why we're laying down this foundation now. Once it's in place, we'll have the legal framework necessary to protect investors and ensure that our markets remain fair and transparent."

Suresh raised his hand to speak. "Sir, I must emphasize one thing. We can't rush this through Parliament. This act will face scrutiny, and there will be pushback. We need to educate our lawmakers about the importance of curbing market manipulation and insider trading. Otherwise, they'll see it as overreach."

Rohan smiled. "I agree, Suresh. We will move carefully. But the longer we wait, the more vulnerable our markets become."

Rajendra spoke again. "I have no more objections, sir. The blueprint is thorough. Let's move forward with this."

Harish gave a slow nod. "Agreed. We'll need to secure support in the Finance Ministry as well, but this is the right step for the country."

Rohan stood up, the decision made. "Then it's settled. We'll finalize the draft and prepare it for Parliament. India's markets will be protected, not just by regulation but by law."

Soon everyone left leaving only Rohan sitting on the chair. These 2 act though important are not complete in his dream to achieve proper modernization of BSE like it was in 2024.

For it to reach that level he needs to implement many more act such as Stock Market Transparency and Disclosure Act, Clearing and Settlement Act, Stock Market Education and Public Participation Act, Corporate Governance Code of Conduct Act, Mutual Fund Regulation Act, Capital Raising and Listing Requirements Act, Derivative Markets and Commodity Futures Regulation Act and Stock Exchange Conduct and Practices Act.

But all these act if brought together might instead break the system. The Indian Financial system is not ready and mature for all these Act.

That is why for now he will focus on the 2 act and make sure they pass the Parliament.