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  Tuhin Kanta Pandey, Chairperson, SEBI, in conversation with Nikunj Dalmia of ET Now. Pandey says stricter regulations may not eliminate fraud. Greed can lead to misconduct even under surveillance. Overregulation to prevent a few cases can cause type II errors. This hinders business operations. Avoiding type I errors, where risky activities are allowed due to lack of regulation, is important. However, excessive surveillance leading to tighter rules is not the Solution I must put it on record that one of the big reasons why Indian markets are trading at a premium to global markets is thanks to the efficient regulator we have, I mean that is a hidden premium and which always is captured in the PE multiples of the Indian stock market. Thank you for this regulatory framework that we have. You are open to expansion of the market, which means more and more products, more and more intra-products would be there. Are we looking at the derivative market in India expanding?Tuhin Kanta Pandey...

Mumbai: Bond purchases by the Reserve Bank of India (RBI) to help infuse liquidity into the system via open market operations (OMO) is likely to eclipse such measures through the Covid period.Institutions expect cumulative purchases via OMO of at least ?4 lakh crore in FY26 would be needed for policy rate transmission to take effect.This would imply that bond purchases by RBI could surpass the ?6.4 lakh crore seen during the covid period between FY20 and FY23.RBI governor Sanjay Malhotra said in his post policy press conference that measures would be taken to take system liquidity to 1% on NDTL which analyst say will be required for transmission of policy rate to lending rate to take place.With the current liquidity infusion by RBI, system liquidity turned positive from late March and the daily average surplus in April stood at ?1.5 lakh crore, or 0.6% of NDTL, according to a report by IDFC First Bank.A large section of bank loan borrowers are yet to see the benefit from the RBIs two c...