SEBI's New Power: Help those duped by ponzi schemes to get back money..!

In a major relief to depositors duped by ponzi schemes, the   SEBI (Securities and Exchange Board of India) recently said its new powers would help in recovery of money from the fraudulent firms and return them to the investors.

SEBI Chairman Mr. U. K. Sinha said, "Through the new ordinance, SEBI can search  and seize ponzi companies besides recovering their properties and returning it to the investors. The regulator SEBI was determined to comedown heavily on ponzi companies"

Mr. U. K. Sinha said "SEBI has taken many initiatives to protect the interests of the common investors."

Consequent upon the recent amendments, SEBI has been empowered to initiate stringent action against unauthorised chit funds & other financial agencies running a business violating rules and regulations,  Mr. U. K. Sinha said.

In a major upgrade of powers given to SEBI, government has allowed it to pass orders such as search & seizure, attachment of properties, arrest & detention of defaulters and pass disgorgement directions to recover the wrongful gains made in contravention of laws.

As per amended law, SEBI can regulate any money pooling scheme worth Rs. 100 crore or / more and attach assets in cases of non-compliance.


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