Pursuant to an ordinance promulgated by the government last month, the powers of SEBI (Securities and Exchange Board of India) officials have been widened to include search and seizure, attachment of properties, arrest and detention of defaulters and disgorgement orders to recover wrongful gains.
Officials have been empowered to seek the assistance of the local administration to recover pending penalties. SEBI has to recover about Rs 120 crore from more than 1,300 entities that have defaulted on payment of penalties imposed on them by the regulator.
While SEBI had to previously go through a lengthy legal process for the recovery of such payments, the capital markets regulator now has the power to attach the assets of defaulters and even order their arrest.
Comments
0 comment