After securing approval from Election Commission and Cabinet on Re-promulgation of the SEBI ordinance and importantly the president, capital market regulator- Securities and Exchange Board of India (SEBI), has yet again got back the power for acting against ponzi schemes, illegal deposit schemes and assess call data records in securities-related offences, besides others.
SEBI’s Ordinance lapsed on January 17 after the Government failed in securing the Securities (laws) Amendment Bill passed in the monsoon, winter and extended winter session of the 15th Lok Sabha, which was adjourned sine die on February 21 and finally prorogued.
Besides keeping in force the amendments that gave legal backing to Sebi to tackle critical issues, including powers to respond to the growing menace of illegal deposit taking and pyramid schemes, the ordinance mandates that an authorized officer may requisition the services of a police officer or any officer of the central government to assist in search and seizure. However, the re-promulgated Securities Laws (Amendment) Ordinance, 2014 provides that the SEBI chairman shall record the reasons in writing while issuing an order for search and seizure.
Further, it also empowers market regulator's board to recall and enhance the penalty imposed by the adjudicating officer. With this, market watchdog could seek information, such as telephone call records, from any persons or entities with respect to any securities transaction being investigated.