Sebi can now hike its penalties, police to help in searches

Mar 31 2014, 20:34 IST
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Sebi would have powers to increase the penalty on an erring entity within three months of passing an order. Reuters Sebi would have powers to increase the penalty on an erring entity within three months of passing an order. Reuters
SummaryWith re-promulgation of the much-awaited Sebi ordinance, the market regulator can now enhance its own penalty against defaulters.

in the Winter session. It was first promulgated on July 18, 2013 and then again on September 16.

The fresh powers would also help the market regulator to more effectively clamp down on illicit money pooling activities, or ponzi schemes, especially since such incidents have been on the rise in recent times.

Under the amended law, Sebi can regulate any money pooling scheme worth Rs 100 crore or more and attach assets in cases of non-compliance. Besides, its chairman can order search and seizure operations.

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