The Securities Laws (Amendment) Bill 2013, which further amends the Securities and Exchange Board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996, has been introduced in the Lok Sabha. The Bill as introduced in the Lok Sabha has been attached here for reference.
Highlights of the Bill
- It seeks to amend the Securities and Exchange Board of India Act, 1992, with further amendments to the Securities Contracts Regulation Act, 1956 and the Depositories Act, 1996.
- Defines Collective Investment Schemes (CIS) as a class of investment products which is being regulated by SEBI.
- The Bill aims to widen the definition of CIS to include all pooling of funds of Rs 100 crore or above, that are not regulated by any law.
- The Bill aims at empowering the Chairman of SEBI to authorize search and seizure of all documents relevant to any investigation.
- It provides SEBI with explicit powers to order disgorgement of unfair gains.
- It also permits SEBI to attach properties & bank accounts, and also order arrests and detention of any person for sheer failure to comply with disgorgement orders or pay any monetary penalty if ordered.
- The Bill recommends establishment of special courts to try reported offences under the Act.
- Two provisions mentioned in the bill are being enacted with retrospective effect:
- Providing SEBI the power to settle non-criminal proceedings by issuing consent orders
- It may also sign agreements for exchange of information with foreign financial regulators.