President Pranab Mukherjee re-promulgated SEBI ordinance

President Pranab Mukherjee cleared the re-promulgation of the SEBI Ordinance that provides powers for SEBI Chairman to authorize Investigating Authority or any other officer of the regulator to conduct search and seizure under the SEBI Act and crack down on Ponzi schemes.

 SEBI ordinance – Securities Laws (Amendment) Bill 2013

  • Purpose: To arm the regulator with more stringent powers comes in wake of thousands of duped investors reportedly taking to the streets in Siliguri (West Bengal) protesting the proliferation of chit fund companies there and the Rs 2,000-crore Sardhaa chit fund scam.
  • SEBI can regulate any money pooling scheme worth Rs 100 crore or more and attach assets in cases of non-compliance and its Chairman can order “search and seizure operations”.
  • Empowers the market watchdog to seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being investigated by it.

Note: The SEBI ordinance lapsed on January 15, has been re-promulgated for the third time as the Parliament could not pass the Securities Laws (Amendment) Bill, 2013, in the winter session.

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