In a major upgrade of Sebi’s powers, the government has allowed it to pass orders like search and seizure, attachment of properties, arrest and detention of defaulters and pass disgorgement directions to recover wrongful gains made in contravention of laws.
At the same time, the government has allowed Sebi to seek information from other regulators within India and abroad with retrospective effect, paving the way for collection of details pertaining to cases pending for over 15 years.
In another retrospective change, which forms part of the Securities Laws Amendment Ordinance promulgated last week, individuals and companies being probed by Sebi can settle their pending investigations. Such settlements can be undertaken in cases that are currently pending for more than six years.
To tackle ponzi schemes being floated as collective investment schemes (CIS), rules have been amended to classify any collection of Rs.100 crore or more as a CIS operation.
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