Chennai: Hopeful of a new law empowering Sebi to crack down on ponzi menace, its chief U K Sinha said Parliament nod for such a bill would send a strong signal to those defrauding gullible investors with illegal schemes. The Cabinet Committee on Economic Affairs (CCEA) cleared the Securities Laws (Amendment) Bill 2014, which would now go to Parliament for passage. The Bill empowers the Securities and Exchange Board of India (Sebi) to attach properties of defaulters, launch recovery proceedings, seek call data records to investigate cases and order search and seizure against manipulators and fraudsters. Asked about CCEA clearance for the bill, Sinha said, “the amendment is to ensure that people who are raising unauthorised deposits from retail investors, what is called as unauthorised collective investment scheme or ponzi schemes, Sebi will be able to work against them more strongly”. Sinha also expressed hope the Bill would get approved in the current session of Parliament.

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