FinMin seeks Law Ministry's opinion to save Sebi ordinance

Finance Ministry has sought opinion of the Law Ministry on the possibility of re-promulgation of SEBI ordinance for the third time as it could not be passed by Parliament.
"We are awaiting law ministry's opinion regarding re-promulgation of the Sebi ordinance," the official told PTI.
The ordinance provides powers for Sebi Chairman to authorise Investigating Authority or any other officer of the regulator to conduct search and seizure under the Sebi Act and crack down on Ponzi schemes.
The ordinance is lapsing on January 15, since Parliament could not pass the Securities Laws (Amendment) Bill 2013 in the Winter session. There is a need to re-promulgate the ordinance to keep the amendments in force.

The Ordinance amending the Securities Laws was promulgated by President Pranab Mukherjee on July 18, 2013 after the Cabinet gave its approval to amend the SEBI Act, 1992 to give Sebi additional powers. It was re-promulgated on September 16.
Recently, Finance Minister P Chidamabaram had also said that the government might promulgate the Sebi ordinance for the third time if the Standing Committee scrutinising the Bill to replace it did not submit the report in the Winter Session.

As per the amended law, 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."

It also 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.
The amendments would clear the air over regulatory gaps and overlaps with regard to types of instruments used in raising funds.