New Delhi: With an aim to bolster its information-gathering mechanism and fast-track its probe, market regulator Sebi has sought direct powers to grant immunity in select cases and to impose lesser penalty if the accused agrees to provide assistance against other wrongdoers.
In two separate proposals for the government, Sebi has opined that such provisions would help it in establishing and securing stronger findings and orders against defaulters against whom sufficient evidence may not be available otherwise, officials said.
The new powers can be crucial for Sebi in some ongoing cases, including one involving a large bank and several high-profile names, officials added. At present, any immunity for securities law violations can be granted only by the central government.
Citing similar powers available with the fair trade watchdog Competition Commission of India (CCI), Sebi has proposed to impose a lesser penalty on a person who may have violated securities laws but provides assistance to the regulator in proceedings against other accused.
Responding to Sebi’s proposal, the Finance Ministry has opined any such powers should remain with the central govt and a provision for that can be made by suitable amendments to the Sebi Act and the Securities Contracts Regulation Act (SCRA).
