Sebi terms illegal fund mobilisation fraudulent
The board of the Securities and Exchange Board of India on Monday declared illegal mobilisation of funds without obtaining its approval as a fraudulent and unfair trade practice. The move will give the regulator the authority to impose deterrent adjudication penalty on unregistered Collective Investment Scheme (CIS) entities that mobilise money. Incidently,the decision coincides with governments move on Monday to introduce the Securities Laws (Amendment) Bill,2013 which will give Sebi powers to crackdown on illegal CIS,conduct search and seizure to establish serious offences. Sebi board also took note of the provisions of the Securities Laws (Amendment) Ordinance,2013 promulgated by President of India on July 18,2013 and discussed the follow-up actions on the part of Sebi. Meanwhile,the independent consultant appointed by Sebi to revisit the structural and organisational issues,re-prioritise areas of focus and to look at technological needs of Sebi has submitted its recommendations to the board. Govt brings bill to amend Sebi laws New Delhi Government has introduced the Securities Laws (Amendment) Bill,2013 in the Lok Sabha to replace the ordinance which sought to provide more powers to Sebi. The bill seeks to to amend the Sebi Act,1992,the Securities Contracts (Regulation) Act,1956 and the Depositories Act,1996. ens