Indian Market Infrastructure among World's Best: Sebi Chairman

By siliconindia | Thursday, 23 May 2013, 13:15 Hrs

Later in 1995, the Securities Law (amendment) Act enhanced Sebi's jurisdiction and its autonomy and gave it powers to take punitive action. Entities like FIIs, rating agencies, venture capital funds and depositories were also brought under its jurisdiction.

Sebi was also given powers to levy monetary penalties, while SAT was set up to give a platform to the aggrieved parties to appeal against Sebi orders.

The next major amendment to the Sebi Act was made in 2002, the year that saw another major scam in form of stock market activities of Ketan Parekh.

These amendments gave Sebi powers to seek information and records from banks and many other authorities, as also the powers for inspection of the books of accounts of listed companies.

It also got the authority to take actions like suspension of trading, debarment of persons and companies from the markets.

A few years later, changes were made in the way stock exchanges were owned and run, by converting them into corporate entities from their earlier avatar of 'mutual' entities that were owned, controlled and managed by brokers and trading members.

After the 2002 amendment, Sebi also got powers to pass interim orders, to investigate and to conduct enquiries and then pass a final order, it was allowed to pass cease and desist orders and impose higher monetary penalties of up to 25 crore.