Government today introduced a bill in Lok Sabha that aims to provide more powers to capital market regulator SEBI to crackdown on fraudulent money pooling schemes, carry out search and seizure activities and set up special courts to expedite cases.
The Securities Laws (Amendment) Bill, 2013, will replace an ordinance promulgated last month.
Introduced by Minister of State for Finance Namo Narain Meena, the Bill is to amend the Securities and Exchange Board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996.
Once the amendments come into effect, capital market watchdog Securities and Exchange Board of India (SEBI) would have powers to call for information from people or entities who are also not associated with the securities market.
"To protect the interests of investors and to ensure orderly development of securities markets, it has become necessary to enhance the powers of the Board," according to the Bill.
Besides, SEBI would monitor collective investment schemes to ensure that such activities, thriving at the expense of gullible investors, are curbed. It would have powers to keep tab on any money pooling scheme worth Rs 100 crore or more and attach assets in cases of non-compliance.
"Further, in view of large pendency of cases, it is necessary to constitute Special Courts for prosecution of offences under the securities laws to provide speedy trial," the Bill said.
