After millions have been robbed of their hard- earned savings in many states, including those by one of the most secretive and corrupt but politically linked Sahara group, finally the government has woken up to give more teeth to the markets watchdog Sebi to take on ponzi operators and others defrauding investors.Accordingly, the government has decided to arm the market regulator with direct powers to conduct search and seizure operations, attach properties and access call data records of suspected defaulters.
A proposal to amend the Sebt Act and other relevant regulations was approved by the Cabinet last evening. This aims at giving Sebi greater powers to tackle all kinds of money-collection schemes, as also to help it more effectively take on the defaulters in the stock markets.These amendments have been finalised after detailed consultations with the Securities and Exchange Board (Sebi) itself, other regulators, as also with various ministries and government departments.
Once the amendments come into effect, the regulator will have direct powers to carry out search and seizure operations and attach properties of defaulters. Besides, Sebi would have powers to seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being probed by it.The capital market watchdog has been seeking an overhaul of regulations as well as mandate for a long time, given the changing nature of the securities market in general, and newertools being used by manipulators to take gullible investors for a ride, in particular.
Currently, Sebi can conduct search and seizure only after approval from a chief metropolitan magistrate, but this provision is often seen as delaying proceedings and hampering the confidential nature of probe.
