Keep the faith: Sebi has enough power to deal with frauds, assures UK Sinha

As the government has decided against granting search and seizure powers to the Securities and Exchange Board of India (Sebi), a top official today said the market regulator has to approach a designated court to be set up in Mumbai for seeking sanction for it.

Replying to a specific question whether the board felt that its power was diluted with the new Bill, Sebi chairman UK Sinha said the bill provided for the establishment of a designated court and the board has to approach to seek sanction for seizure and search operations.

“As per the earlier ordinance, the chairman had the power to order the seizure and search operations, but now we have go to the court,” he clarified.

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Sebi is one of the most powerful regulators in the world and “we have enough powers to deal with fraudulent cases,” Sinha said.

When pointed that the move was seen as dilution of power to check and balance on Sebi, the official said, “We have to do our best. Whatever Parliament gives, we have to work within the framework.”

The Bill, however, gives sweeping powers to Sebi to attach property, launch recovery proceedings and seek call records data to investigate cases, he said.

The mutual fund (MF) retirement plans would get tax deduction benefits under Section 80C of the Income Tax (IT) Act.

“It would be covered under 80C and all eligible schemes would be included in that,” Sinha said, replying to a question.

He was here to launch a series of dialogues with SMEs in various clusters to create awareness among them about the new capital market avenues for raising capital and improving visibility.

“We don’t have to amend the IT Act (for allowing MF retirement plans). It can be done through a notification,” he said, adding that Central Board of Direct Taxes would notify the changes.

Sebi is also in dialogue with the MF industry and Finance ministry over the issue of doubling of long-term capital gains tax on fixed income schemes, Sinha said.

PTI