SEBI To Get Greater Investigative Authority Under New Indian Legislation

The Indian government has introduced a bill in parliament proposing enhanced investigative powers for the Securities and Exchange Board of India (SEBI) and mandatory conflict-of-interest disclosures by its board members.

The legislation allows SEBI to access records from any individual, financial institution or corporation in cases of market manipulation and fraud and aims to improve information-sharing with domestic and foreign regulators. The bill proposes establishing special securities market courts and requires investigations and investor complaints to be closed within 180 days, with possible extensions by the board. Board members would disclose direct or indirect interests and recuse themselves when necessary. The proposal also expands the SEBI board from nine to 15 members, allows the government authority to ban certain securities or exempt public sector firms, and revises penalties for market intermediaries.