The Cabinet is likely to consider on Friday a proposal to bring an ordinance that provides more powers to market regulator Sebi for cracking down on ponzi schemes. The Securities law (Amendment) Ordinance will be re-promulgated as it had lapsed on January 15.
According to sources, the Cabinet may tomorrow consider a proposal to bring the ordinance. The Securities and Exchange Board of India (Sebi) was given these powers last year through an ordinance, which was first promulgated in July and for second time in September, but it lapsed last month as a Bill in this regard could not be passed in Parliament.The actions taken by Sebi till January 15 would remain valid and the recovery proceedings would continue in these cases.