Mumbai: Finance Minister P Chidambaram on Saturday said the government may promulgate the ordinance giving greater powers to Sebi for the third time if the Standing Committee scrutinising the Bill to replace it does not submit the report in the current Session of Parliament.
Speaking at an NSE event to mark its 20th anniversary, the Minister said the "legislation and law making in India is a complex process" and the government may promulgate Sebi ordinance for the third time if the House panel does not submit its report by end of the winter session on December 20.
He said the Committee was to submit the report on first day of the Session (December 5), but it is yet to be done.
If the report does not come by the last day of Session, the government will have to, in an unprecedented move, promulgate the ordinance for third time, the Minister said.
The ordinance has already been promulgated twice so that the powers given to Sebi remain in place for effective supervision of markets and regulatory actions, he said.
The ordinance provides powers for Sebi Chairman to authorise Investigating Authority or any other officer of the regulator to conduct search and seizure under the Sebi Act.
It also empowers Sebi to make regulations in relation to search and seizure.
Talking about the recommendations of the Financial Sector Legislative Reforms Council (FSLRC), Chidambaram said government attaches great value to the recommendations.
"However, I acknowledge that passing legislation in terms of the recommendation of the FSLRC wil take time. Legislation and law making in India is a complex process...Therefore, we have decided that while we will actively pursue making the law, we will make a beginning with implementing the non legislative recommendations...," he said.
The recommendations are, among other things, aimed at making Indian financial sector sound, well regulated, efficient and internationally competitive.