Cabinet clears bill to empower Sebi to deal with ponzi schemes

Jul 24 2014, 14:44 IST
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The Bill seeks to give Sebi sweeping powers like attachment of properties.(Reuters) The Bill seeks to give Sebi sweeping powers like attachment of properties.(Reuters)
SummaryThe previous UPA government had sought to empower the market regulator to deal with ponzi schemes through an Ordinance.

A Bill to effectively empower the market regulator Sebi to crack down on ponzi schemes and investment frauds was approved by the Cabinet today.

Following the CCEA approval, the Securities Laws (Amendment) Bill will be introduced in Parliament.

"The Cabinet Committee on Economic Affairs has cleared the Sebi Bill," an official source said.

The Bill seeks to give Sebi sweeping powers like attachment of properties, launch of recovery proceedings, seeking call data records to investigate cases and ordering search and seizure against manipulators and fraudsters.

The previous UPA government had sought to empower the market regulator to deal with ponzi schemes through an Ordinance, which was promulgated thrice. However, the Ordinance could not be passed by Parliament which is necessary for making in an Act.

Once the amendment, approved by the CCEA, is passed by Parliament, Sebi would get the requisite powers to deal with economic offences of serious nature.

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