SECURITIES LAWS (AMENDMENT) BILL, 2013
Government
on Monday(12-08-2013) introduced a bill in the Lok Sabha to replace the ordinance which
sought to provide more powers to capital market regulator SEBI.
The
Securities Laws (Amendment) Bill, 2013, was introduced by Minister of State for
Finance Namo Narain Meena.
The
Bill is to amend the Securities and Exchange Board of India Act, 1992, the
Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996.
In
July, President Pranab Mukherjee had promulgated an ordinance amending the
securities law that would provide more powers to the capital market watchdog
Securities and Exchange Board of India (SEBI).
With
the amendments, SEBI would have more powers to crack down on ponzi schemes,
seek phone call records to check insider trading and carry out search and
seizure operations.
Last month, the government had said promulgation of the ordinance demonstrated its firm commitment and resolve to act with speed and alacrity to curb irregularities and frauds in securities market.
Last month, the government had said promulgation of the ordinance demonstrated its firm commitment and resolve to act with speed and alacrity to curb irregularities and frauds in securities market.
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, it said, adding the
SEBI Chairman would have the authority to order "search and seizure
operations".
The
market watchdog would also have powers to seek information, such as telephone
call data records, from any person or entity 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.
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