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Sebi guidelines on seizure powers soon
March 21, 2003 16:11 IST
Securities and Exchange Board of India would come out with transparent guidelines on search and seizure powers of the regulator along with procedures for investigating companies for insider trading and market misconduct.
"Sebi will soon issue transparent guidelines on search and seizure power as it has been provided in Sebi Amendment Act," U K Sinha, joint secretary (capital markets) in ministry of finance, said in New Delhi.
He said the regulator would have the discretion for imposing penalties of up to Rs 25 crore or three times the ill-gotten gains.
Although Sebi was handicapped in taking stringent action against erring companies so far, Sinha said, "things are moving fast now."
All instances of insider trading and market misconduct would be dealt with strictly and promptly, he added.
Government would also introduce a Bill to amend the Securities Control and Regulation Act in the upcoming session of Parliament. He said the amendment was necessary to pave the way for demutualisation of stock exchanges.
He said Sebi would also come up with guidelines for starting the 'Central Listing Authority'.
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