The Bombay Stock Exchange and National Stock Exchange will make presentations before the Justice Dhanuka committee on May 1 to suggest changes in the Securities and Contract Regulation Act (SCRA) and the Sebi Act.
The committee has been set up by Sebi for suggesting amendments in both these acts.
Besides the two bourses, the Association of Merchant Bankers of India (Ambi) and the Association of Mutual Funds in India (Amfi) will also discuss their views on these amendments with the committee on May 3.
Also Read
Dharmishta Rawal, executive director in charge of legal department at Sebi said : It is important to understand the view of the stock exchanges with regard to the amendments to be made in the SCRA and Sebi Act. They will meet Justice Dhanuka and present their respective cases.
Senior officials at NSE and BSE declined to make any comment on the issue as they were still working on the presentations. It was indicated that Sebi should restrict its role to macro management and micro management should be left to the exchanges.
The two associations, Ambi and Amfi, have yet to decide on their stand. K N Atmaramani, managing director, Tata AMC, and an Amfi board member said: We have yet to discuss the issue on our stand. The matter is likely to be discussed at the AGM (to be held today).
P Chandrasekhar, director, Erudite Capital Creations and Ambi vice-chairman said the association has set up a four-member panel to look into the suggestions that need to be made. The panel will be chaired by Chandrasekhar. Others on it include M R Mondkar of JM, Vallabh Bhansali of Enam and R Rangarajan of Stan chart. He said: We have constituted a panel which is likely to meet on April 28 to deliberate the issue. The focus of the discussion is likely to be around giving statutory powers to SROs like Ambi.
Rawal hinted that the Dhanuka panel will take up the issue of providing statutory powers within the framework of the Sebi Act.
The panel has so far recommended that the Sebi Act and the SCRA should be incorporated in the schedule to the Economic Offences (Inapplicability of Limitation) Act, 1974. This will empower Sebi to launch a prosecution even if the period of limitation expires.
According to Section 468 of Code of Criminal Procedure, no prosecution can be launched if the period of limitation has expired.The SEs will meet Justice Dhanuka and present their respective cases