The Securities and Exchange Board of India (Sebi) is likely to authorise its board to order action against market participants without obtaining the consent of the chairman in certain cases.
The move, likely to be approved at the Sebi board meeting in Chennai on Tuesday, will allow the regulator to bypass its chairman in cases where he may be an interested party.
The board is also likely to approve a further tightening of the provisions of the Investor Protection Act. A government official said this was to ensure that the market regulator was fully capable of carrying out its responsibilities. Under the Sebi Act, any executive action has to be approved by the chairman of the board.
The Sebi Act, as amended by Parliament last year, allows the market regulator
