Sebi eyes foreign help to crack market manipulations

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SummaryHaving been very prompt in replying to information requests from its oversees peers

Having been very prompt in replying to information requests from its oversees peers, Sebi is also looking at greater help from foreign regulators in its attempts to check investor frauds and market manipulations.

The move assumes significance in the wake of cross-border transactions gaining more prominence in financial markets, which in turn is also leading to a larger number of fraudsters and market manipulators trying to use offshore locations to avoid regulatory actions.

Armed with greater powers to seek information from "other authorities, whether in India or outside India", Sebi is now forcefully seeking required information from its peers in foreign countries for prevention or detection of violations in respect of securities laws, a senior official said.

These powers have been granted to Sebi through the Securities Laws (Amendment) Second Ordinance, which was promulgated in September this year to amend Sebi Act and other regulations governing capital markets.

As per the Ordinance, Sebi can enter into "an arrangement or agreement or understanding" with foreign authorities with the prior government approval for such information exchange.

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