India's President Mr. Pranab Mukherjee has
re-promulgated the ordinance that provides more powers to market regulator SEBI
(Securities and Exchange Board of India ), especially, to crack down on illicit
money pooling schemes.
The ordinance, which
lapsed on January 15, 2014 has been re-promulgated for the 3rd time as the
Parliament could not pass the Securities Laws (Amendment) Bill 2013 in the
Winter session.
"Yes" said
a top government official when asked if the President grants SEBI prosecution
powersent has re-promulgated the SEBI ordinance.
Image: ibnlive.in.com
Among others, the
ordinance provides powers for SEBI Chairman to authorise search and seizure.
For re-promulgating
the ordinance for the 3rd time, the Finance Ministry had sought opinion of the
Law Ministry and later it was cleared by the Cabinet.
The ordinance was
earlier promulgated by President Mr.
Pranab Mukherjee on July 18, 2013 after the Cabinet gave its approval to amend
the SEBIi Act, 1992 to give SEBI additional powers and was re-promulgated on
September 16, 2013
As per the amended
law, SEBI can regulate any money pooling scheme worth Rs. 100 crore or more and
attach assets in cases of non-compliance and its Chairman can order
"search& seizure operations."
It also empowers the
market watchdog to seek information, like telephone call data records, from any
persons or / entities in respect to any securities transaction being
investigated by it.
The amendments would
clear the air over regulatory gaps and overlaps with regard to types of
instruments used in raising funds.
PTI
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