The Union government on 17 July 2013 approved a proposal to amend SEBI Act for providing more powers to the market regulator to crack down on Ponzi schemes.
As per the approval, SEBI will be given powers to conduct search and seizure operations and access call data records. Amendments to the Sebi Act and other relevant regulations were finalised after detailed consultations with the Securities and Exchange Board of India (SEBI).
Power to be given to SEBI with the approval
• SEBI regulator will get direct powers to carry out search and seizure operations and for attachment of assets, as part of efforts to crackdown on ponzi schemes.
• The SEBI would have powers to seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being probed by it.
SEBI since many years has been seeking a revamp of regulations as well as consent for a long time, given the changing nature of the securities market in general, and newer tools being used by manipulators to take gullible investors for a ride, in particular.