While participating in a discussion on the new amendment of Securities laws (Amendment) Bill, 2014, Baleswar MP Rabindra Kumar Jena argued that while it is a welcome step to bring amendment to the SEBI Act, there are certain provisions which are not acceptable.
He stated that there should be a blanket ban on the entire investment scheme floated by the chit fund and non-banking finance companies who are promising unreasonable return.
Jena was extremely critical of the Government’s proposal that only those schemes that are collecting Rs100 crore and above will come under the ambit of the new amendment to enable the market regulator SEBI to take action.
He suggested to the Union Finance Minister that unless the Rs100 crore cap is changed, the very objective of the scheme to protect the small investors will be defeated in the first place. He was also critical of so much of legislative power which is proposed to be conferred upon the SEBI. He however, commended its role in securing the investment environment.