The government, on Thursday, gave more powers to market regulator SEBI to crackdown on ponzi schemes, access phone call records to check insider trading and carry out search and seizure operations.
The Ordinance, amending the Securities Laws, was promulgated by President Pranab Mukherjee within a day of the Union Cabinet approving the proposal to give more powers to Securities and Exchange Board of India.
“The government believes that these amendments would give SEBI the legal backing to clamp down on unscrupulous entities that are using newer methods to take gullible investors for a ride,” an official statement said.
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As per the amended law, SEBI can regulate any money pooling scheme worth Rs.100 crore or more and attach assets in cases of non-compliance, it said.