In order to strengthen the Securities and Exchange Board of India (SEBIs) enforcement mechanism and also to improve its system of recovery of siphoned off money, the SEBI committee headed by former Supreme Court Judge Anil Dave has proposed a method of quantification of profit made by the defaulter and loss caused to investors in a 424-page exhaustive report.
- The committee also examined the insolvency, recovery and securities laws jurisprudence of India and abroad and suggested suitable changes in the Insolvency and Bankruptcy Code, 2016 to ensure that insolvency law is not used as a protection, 2020 by defaulters, thereby protecting the interest of investors.
- The regulator has invited public comments till July 7, 2020 on the suggestions made by the committee.
Key Points:
-The panel recommended amendment in Intermediaries Regulations to the SEBI. It has suggested that a two-tier enquiry process of registration for intermediaries should be replaced with an enquiry process for early completion of the enquiry proceedings.
-It has been proposed that the opportunity of personal hearing to be given by the designated authority (DA) and not by the designated member (DM).
-With regard to recovery of money, Sebi should be given power to impound and retain the proceeds or securities or money not exceeding the value of the proceeds in respect of any transaction, which is under investigation.
About SEBI:
Headquarter– Mumbai, Maharashtra
Chairman– Ajay Tyagi
