SEBI seeks stronger recovery powers
1 Nov 2012 12:37 AM GMT
Concerned over a large number of people and entities evading payment of penalties imposed on them, market regulator SEBI has asked the government to amend regulations to provide it with stronger recovery powers.
'We need the support of the government on this, in the sense that methods provided in the SEBI Act for recovery (of penalties imposed by us) is different from what is there in, say for example, the CCI Act and the Income Tax Act,' SEBI chairman U K Sinha said here.'Our provisions for recovery are less effective, and therefore somebody can choose to ignore and the actual actions against them can take years,' Sinha said.
The Securities and Exchange Board of India (SEBI) is mandated to safeguard the interest of investors and to regulate and promote various segments of the capital markets.
SEBI has powers to take actions, including imposition of monetary penalties, against the persons and entities found to be engaged in manipulative activities and violating the regulations for the securities markets.
However, the latest data available with SEBI shows that there existed more than 1,200 defaulters as on 30 June 2012, who have not paid an amount totalling more than Rs 100 crore worth of penalties.
'We need the support of the government on this, in the sense that methods provided in the SEBI Act for recovery (of penalties imposed by us) is different from what is there in, say for example, the CCI Act and the Income Tax Act,' SEBI chairman U K Sinha said here.'Our provisions for recovery are less effective, and therefore somebody can choose to ignore and the actual actions against them can take years,' Sinha said.
The Securities and Exchange Board of India (SEBI) is mandated to safeguard the interest of investors and to regulate and promote various segments of the capital markets.
SEBI has powers to take actions, including imposition of monetary penalties, against the persons and entities found to be engaged in manipulative activities and violating the regulations for the securities markets.
However, the latest data available with SEBI shows that there existed more than 1,200 defaulters as on 30 June 2012, who have not paid an amount totalling more than Rs 100 crore worth of penalties.
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