The government may have to promulgate the ordinance giving greater powers to the Securities and Exchange Board of India (Sebi) for an “unprecedented” third time if the Parliamentary Standing Committee on Finance does not submit its report on the Securities Bill in the current session of Parliament.
Addressing a function organised by the NSE, finance minister P Chidambaram said the “legislation and law making in India is a complex process” and the government may promulgate Sebi ordinance for the third time if the House panel does not submit its report by end of the Winter Session on December 20.
The committee has not yet submitted the report, which was initially slated for December 5 — the first day of the session. “If the report does not come by the last day of the session, the government will have to, in an unprecedented move, promulgate the ordinance for third time,” Chidambaram said.
The ordinance provides powers for Sebi chairman to authorise the investigating authority or any other officer of the regulator to conduct search and seizure under the Sebi Act.
Chidambaram said the executive has been hampered by the overreach of other institutions.
“Parliament is nearly totally paralysed. There is a mistaken romantic view that there is a judicial solution to our problems. In terms of three branches of the government coming together which is necessary for implementation, we are at one of the weakest points in India’s history,” he said.