Sebi notifies norms to dilute powers of chairman

Markets regulator Sebi has notified new norms that will dilute its chairman's powers on conduct of search and seizure of defaulters' properties, with permission for such operations being required from a special court.

Under the new norms, Sebi will have to seek permission from special courts to conduct search and seizure operations, as against earlier regulations that had provided the capital markets regulator chief to directly authorise such actions.

These regulations would be called the Securities and Exchange Board of India (Procedure for Search and Seizure) Repeal Regulations, 2015. The move comes following demands that the greater powers need to be balanced with necessary safeguards.

The Sebi Chairman was earlier authorised to conduct search and seizure operations against suspected entities, but the new notification provides that permission for such actions would need to be obtained from a Magistrate or Judge of a designated court.