Cabinet likely to take up Sebi Act amendments tomorrow
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Cabinet likely to take up Sebi Act amendments tomorrow

Last Updated: Tuesday, July 16, 2013, 18:55
 
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Cabinet likely to take up Sebi Act amendments tomorrow
New Delhi: The Cabinet is likely to discuss on Wednesday amendments to various regulations that will provide more powers to capital market regulator Sebi to tackle fraudulent investment schemes.

The government plans to provide Sebi with direct powers to carry out search and seizure operations and for attachment of assets, as part of efforts to crackdown on ponzi schemes.

Sources said amendments to Sebi Act and other relevant regulations are likely to be deliberated upon by the Cabinet tomorrow.

The required changes have been finalised after detailed consultations with the Securities and Exchange Board of India (Sebi).

After getting the Cabinet nod, the government plans to introduce the Securities Laws (Amendment) Bill, 2013 in Parliament to carry out the proposed changes for grant of stronger powers to Sebi, they added.

Besides, the government has proposed to give Sebi powers to seek information, such as telephone call data records, from from any persons or entities in respect to any securities transaction being probed by it.

The capital market watchdog has been seeking an overhaul of regulations governing its powers and mandate for a long time, given the changing nature of the securities market in general, and newer tools being used by manipulators to take gullible investors for a ride, in particular.

The proposed amendment seeks to bring all kinds of ponzi schemes, which are thriving in various semi urban and rural areas at the expense of gullible investors, are brought under Sebi's oversight, which itself would be made much more effective to safeguard investors from being defrauded.

Further, the government has proposed to provide Sebi with direct powers to conduct search and seizure with authorisation from its Chairman.

Currently, Sebi can conduct search and seizure only after approval from the Chief Metropolitan Magistrate, but this provision is often seen to delay proceedings and hamper the confidential nature of probe.

PTI



First Published: Tuesday, July 16, 2013, 18:55


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