Why in news?
As part of the proposed amendments in the Finance Bill 2018, the government has given more power to the Securities and Exchange Board of India (SEBI) to impose monetary penalties on important market intermediaries such as stock exchanges and clearing corporations and also act against newer categories of participants likes investment advisers, research analysts, real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).
FACTS FOR PRELIMS
It was constituted on 12th April 1988 as an interim administrative body under the Finance Ministry. Four years later, on 4th April 1992, a notification awarding statutory powers to SEBI was issued (Securities and Exchange Board of India Act, 1992).
The decisions taken by Securities and Exchange Board of India are collectively taken by its Board that consists of a Chairman and eight other members.
Moreover, Securities and Exchange Board of India appoints various committees, whenever required to look into the pressing issues of that time.
Further, a Securities Appellate Tribunal – SAT has been constituted to protect the interest of entities that feel aggrieved by any of SEBI’s decision
Powers and Functions of SEBI
Securities and Exchange Board of India is a quasi-legislative, quasi-judicial and quasi-executive body. It can draft regulations, conduct inquiries, pass rulings and impose penalties.
The government has promulgated Securities Laws (Amendment) Second Ordinance, 2013 that would amend the Securities and Exchange Board of India Act, the Securities Contracts (Regulation) Act and the Depositories Act. With these amendments. The SEBI Chairman would have the authority to order “search and seizure operations”. The amended law would also allow Securities and Exchange Board of India 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 law would further allow setting up of special courts to speed up SEBI related cases.
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