The Securities laws (Amendment) Bill, that empowers Securities and Exchange Board of India (SEBI) to act swiftly against ponzi operators and market manipulators, was passed by the Rajya Sabha on Tuesday. The Bill, that safeguards investors interests, was cleared by lok Sabha last week.
The Bill replaces the Ordinance brought by UPA Government. It empowers SEBI to act against all illegal money-pooling schemes involving Rs 100 crore or more, launch recovery proceedings, pass disgorgement orders for the ill-gotten money. It also empowers SEBI to seek call data records and other information from any person, company, bank, authority or organization. The SEBI can also go for search and seizure, attachment orders and recovery proceedings with the permission of a magistrate. Finance Minister Arun Jaitely clarified that these powers do not include authority to tap phones, intercept calls and snoop into other electronic data.
Besides, a special SEBI court would be set up in Mumbai to fast track prosecution proceedings. It will also give search and seizure permissions to SEBI, a power which rested with the SEBI chief under the Ordinance. However, in order to have a safeguard against any possible misuse of such powers by the capital markets regulator, SEBI has to now take permission from magistrate or judge of a designated court.