SEBI to go in for a major revamp
The market regulator Securities and Exchange Board of India (SEBI) has decided to go in for a major refurbishment of its role, vision and organisational set up with a stronger workforce and greater IT resources in order to improve focus on mobilizing household savings into capital markets and to strengthen its supervisory functions.
It has been asked to work for a re-organisation of its functional departments, increase its manpower, improve its IT strategy for organisational efficiency and strengthen its training and performance management system.
SEBI has decided to declare illegal mobilisation of funds as a “fraudulent and unfair trade” practice in order to control the rising incidences of public getting defrauded by money pooling schemes. It has clarified that the existing list of activities coming under fraudulent and unfair trade practices can be further expanded whenever the need arises.
All activities of money mobilization through unauthorized Collective Investment Schemes (CIS) would face stronger penalties prescribed under the revised SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations.