Sebi may get greater powers to check money-pooling frauds - Indian Express

PTI : New Delhi, Sat Apr 27 2013, 12:24 hrs Market regulator Sebi may get greater powers to check money-pooling frauds by various entities across the country, as the government is considering a major overhaul of regulations governing such schemes. The proposed critical amendments to the securities laws, would also involve the capital markets regulator getting direct powers for attachment of properties, search and seizure of assets and powers to seek information from any entity in relation to its probes against erring persons and entities. The amendments could be made to a host of regulations, including the Sebi Act, the Securities Contracts (Regulation) Act and the Depositories Act, a senior official said. As a result, Sebi could be given powers for overall regulation and oversight of all kinds of money-pooling activities and the definition of Collective Investment Schemes would be expanded to include all kinds of activities involving collection of Rs 100 crore or more public money, he added. While CIS operations already come under Sebi's jurisdiction, many companies try to challenge the regulator's actions taking advantage of loopholes in the existing norms and on the grounds of multiplicity of regulators. The official said that Sebi has been given assurance by the government that the regulations would be amended soon. While proposals to these effects are being pursued by Sebi for almost four years now, a strong need to push with these changes has been felt in the recent months in the wake of a long-running tussle between Sebi and Sahara group. The recent developments involving an alleged defrauding of lakhs of investors by West Bengal-based Saradha group and other entities in the state have further underscored the need to change the regulations to give greater powers to Sebi. Sebi was earlier of the view that a separate regulator should be considered for all kinds of public money-pooling activities by non-listed entities under a separate act. ... contd. ALSO READ BSE Sensex Week Ahead: Shares to consolidate ahead of RBI monetary policy review BSE Sensex snaps gaining trend, falls 120 points, ICICI Bank shares decline Small investors, HNIs hike Kingfisher stake, FIIs trim holding Jindal Steel shares falls as Q4 profit lags, Kotak says clarification required Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNErjfcJGf1J4Cy8Gzr-QikOHmPuNQ&url=http://www.indianexpress.com/news/sebi-may-get-greater-powers-to-check-moneypooling-frauds/1108458/

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