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The Cabinet on Wednesday approved amendment to the Sebi Act, which is expected to arm the stock market regulator to crack down on collective investment schemes such as the Saradha scam in West Bengal.
Senior government sources told TOI that the Cabinet had shown the green light to the proposal to provide more powers to Sebi to help investigate and punish fly-by night operators of Ponzi schemes. Sebi will be able to summon any person or entity to assist in an investigation into a chit fund or a para-banking operation. It also provide powers to the stock market regulator to undertake "search and seizure" operations and help them access call records. "This will enhance regulation of collective investment schemes," said a senior government official. The changes in the Act is also likely to plug regulatory loopholes and clearly detail the jurisdiction of the stock market regulator on such schemes. As reported by TOI Sebi will be able to impose "disgorgement orders" on a company that defaults on its commitments or makes illegal gains. The regulator will use its "inherent powers" to recover ill-gotten gains that will then be utilized to promote "investor protection and education".
Sebi will be able to impose "disgorgement orders" on a company that defaults on its commitments or makes illegal gains. The regulator will use its "inherent powers" to recover ill-gotten gains that will be utilized to promote "investor protection and education".
The regulator will be able to issue consent orders in case the concerned entity fails to report changes in its holding pattern or rules governing its operations. The proposal also aims to increase Sebi's powers to impose monetary penalties.
Source: TimesofIndia
Senior government sources told TOI that the Cabinet had shown the green light to the proposal to provide more powers to Sebi to help investigate and punish fly-by night operators of Ponzi schemes. Sebi will be able to summon any person or entity to assist in an investigation into a chit fund or a para-banking operation. It also provide powers to the stock market regulator to undertake "search and seizure" operations and help them access call records. "This will enhance regulation of collective investment schemes," said a senior government official. The changes in the Act is also likely to plug regulatory loopholes and clearly detail the jurisdiction of the stock market regulator on such schemes. As reported by TOI Sebi will be able to impose "disgorgement orders" on a company that defaults on its commitments or makes illegal gains. The regulator will use its "inherent powers" to recover ill-gotten gains that will then be utilized to promote "investor protection and education".
Sebi will be able to impose "disgorgement orders" on a company that defaults on its commitments or makes illegal gains. The regulator will use its "inherent powers" to recover ill-gotten gains that will be utilized to promote "investor protection and education".
The regulator will be able to issue consent orders in case the concerned entity fails to report changes in its holding pattern or rules governing its operations. The proposal also aims to increase Sebi's powers to impose monetary penalties.
Source: TimesofIndia
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