The Indian government has proposed to arm Securities and Exchange Board of India (SEBI) with stronger powers to tackle ponzi schemes.
The new proposal, which is yet to receive cabinet’s approval, propose to give the financial regulator powers to carry out search and seizure operations and attach assets.
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Apart from search and seizure power the government also plans to allow SEBI access to telephone data records of persons or entities for conducting a probe on those suspected to be involved in any kind of fraudulent schemes.
At present, SEBI can conduct search and seizure only after approval from the Chief Metropolitan Magistrate, but this provision often delays proceedings and hampers the confidential nature of the probe.
It has also been proposed that special courts be set up to deal with offences under securities laws, and the counsel representing SEBI to be deemed as public prosecutors.
The proposed amendment seeks to bring all kinds of ponzi schemes which are thriving in various semi urban and rural areas at the expense of gullible investors are brought under SEBI’s oversight.
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By GlobalDataPost Cabinet approval government plans to introduce the Securities Laws Amendment Bill 2013 in Parliament to carry out the proposed changes for grant of stronger powers to SEBI.
