Replying to a question in the Rajya Sabha, minister of state for finance Namo Narain Meena said Sebi has proposed that the Sebi Act be amended to provide for effective mechanisms for recovery of monetary penalties imposed by Sebi.
Sebi wanted this to be done in a manner as may be specified by regulations or as per provisions of the Income Tax Act through a reference to the Income Tax Authority on the lines of the provisions of Section 39 of the Competition Act, 2002, the minister said. As on June 30, 2012, there were 1,290 defaulters and the total amount of penalty imposed on them was R112.25 crore.
Sebi chairman UK Sinha had said recently that the regulator had asked the government to amend regulations to ensure that it gets stronger recovery powers.
We need the support of the government on this, in the sense that methods provided in the Sebi Act for recovery (of penalties imposed by us) is different from what is there in,say for example, the CCI Act and the Income Tax Act, Sinha had said.