Government on Thursday withdrew a bill to amend the Securities and Exchange Board of India Act ahead of introduction of a new bill that would give more powers to capital market regulator SEBI.
Finance Minister P Chidambaram proposed in the Lok Sabha to withdraw the bill, which was introduced in March this year, to amend the SEBI Act. The proposal was passed by the House.
The withdrawn bill was passed by the Rajya Sabha on March 11 and was tabled in the Lok Sabha the next day.
In July, President Pranab Mukherjee had promulgated an ordinance amending the securities law that would provide more powers to the capital market watchdog.
The government plans to introduce a new bill replacing the ordinance in the ongoing Monsoon session.
With amendments, SEBI would have more powers to crack down on ponzi schemes, access phone call records to check insider trading and carry out search and seizure operations.
Last month, the government had said promulgation of the ordinance demonstrated its firm commitment and resolve to act with speed and alacrity to curb irregularities and frauds in securities market.