Amendments Give More Teeth To Securities Regulator

The policy paralysis plaguing India's regulatory system seems to have abated with the notification of the Securities Laws (Amendment) Act, 2014, on 22 August. The act had already enjoyed two terms in force as ordinances promulgated by the president of India.

Though the act differs from the earlier two ordinances in substance, in spirit its focus remains to give the Securities and Exchange Board of India (SEBI) further strength to combat the menace of fraudulent activities which were harming the interests of investors as well as threatening the security, stability and integrity of the securities markets in India.

New and wider powers

The act amends the SEBI Act, the Depositories Act and the Securities Contracts (Regulation) Act to provide new and wide-ranging powers to SEBI as well as expanding the ambit of some of SEBI's existing powers. Under the provisions of the act, the power to call for information from entities has been expanded. The power to requisition