securities law amendment bill, 2014
DESCRIPTION
SECURITIES LAW AMENDMENT BILL, 2014 passed by the LOK SABHA on 8th August, 2014 amending the SEBI, 1992 , SCRA 1956 and Depositories Act, 1996TRANSCRIPT
The Securities Laws
(Amendment) Bill, 2014
NEED FOR AMENDMENT
CHIT FUNDS:A chit fund is a kind of savings scheme practiced in India. A chit fund company is a company that manages, conducts, or supervises a chit scheme.
NEED FOR AMENDMENTCHIT FUND = CHEAT FUND
Small Investors had deposited their savings in to such schemes and later found themselves cheated.
The existing regulations were not enough to safe guard the investors from such schemes.
NEED FOR AMENDMENT
vs
NEED FOR AMENDMENT
NEED FOR AMENDMENT
NEED FOR AMENDMENT
“INVESTOR PROTECTION”
from illegal deposit taking schemes
EMPOWER THE REGULATOR – S.E.B.I
HIGHLIGHTS OF THE BILL
The Bill proposed amendments & insertion of new sections in the following acts :-
SEBI Act, 1992
Securities Contract (Regulation) Act, 1956
Depositories Act, 1996
HIGHLIGHTS OF THE BILL
POWER TO SEBIRegulate any pooling of
funds of ₹100 Crore & above, if not overseen by any regulator
Recover monetary penalties imposed by it through attachment and sale of assets
HIGHLIGHTS OF THE BILL
POWER TO SEBIArrest and detain an
individual for any failure to comply with its orders
Call for information and records from any person, including banks or other authority
HIGHLIGHTS OF THE BILL
POWER TO SEBIEstablish special courts for
speedy trials of offences under the SEBI Act
Search & Seizure operations on any suspected violator, its premise*
*(after obtaining permission from a magistrate or judge of a court in Mumbai)
HIGHLIGHTS OF THE BILL
DUTY OF
Clearly define the term ‘pooling of funds’
Clarify the applicability & scope of CIS (Collective Investment Scheme)
Bill passed on 8th August, 2014 at Lok
Sabha
Copy of the Bill
