Budget 2013: Govt to give more power to market regulator Sebi
Promising greater powers to Sebi in its silver jubilee year, Finance Minister P Chidambaram today said a proposal is under consideration to amend the Sebi Act, which governs various activities concerning the capital markets.
"I believe that India's capital market is among the best regulated markets. This year is Sebi's silver jubilee year and I offer the regulator our congratulations. A proposal to amend the SEBI Act to strengthen the regulator is under consideration," Chidambaram said during his Budget speech.
By way of amendment in the Sebi Act, the market regulator has already sought a major overhaul of the securities laws including greater authority to nail manipulators by way of powers to conduct 'search and seizure' operations and to demand information from any person in relation to its probes.
It has also proposed the recovery of monetary penalties through Income-Tax arrear mechanism, setting up of special courts to deal with criminal prosecution for violation of securities laws and recognition of Sebi's counsels as public prosecutors.
Sebi has decided to pursue these proposed amendments in view of the challenges faced by it in areas such as the recovery and realisation of monetary penalties and regulation of pooling of monies from public by schemes including those in the nature of collective investments, among others.
The market regulator has been facing impediments on its investigation and enforcement powers with regard to protecting investments by attachment of assets. It has also faced challenges to enforcement and implementation of its orders.
In addition, Sebi has
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