Sebi on Thursday proposed new norms to exercise its powers to conduct search and seizure during investigations, while adopting necessary safeguards to protect the rights of persons subjected to such operations.
Inviting public comments till end of this month for draft regulations, titled Sebi (Procedure for Search and Seizure) Regulations, 2013, it said detailed procedures need to be laid down “relating to the procedural safeguards during different stages of search and seizure and the rights of those persons subjected to search and the obligations of the authorised persons.”
The regulations would help it “exercise the powers of search and seizure at the time of investigation, harmonious with the rights of the persons who are subjected to search of their person and property, while pursuing the Sebi’s statutory mandate of investor protection,” it noted. The new powers are aimed at making Sebi more effective in protecting investor interest and helping it to better regulate the market, including enforcement of securities laws.
The government promulgated Securities Laws (Amendment) Second Ordinance, 2013 on September 16, conferring explicit powers on Sebi chairman to authorise investigating authority or any other officer of Sebi to conduct search and seizure under the Sebi Act.