- The Cabinet Committee on Economic Affairs has granted SEBI the power to crack down the Ponzi schemes and illegal deposit schemes such as chit funds.
- The Parliament the Securities Laws (Amendment) Bill will:
- Empower SEBI to attach properties, launch recovery proceedings and seek call-data records in its investigations of securities-related offences
- Propose search and seizure powers for SEBI.
- Provide SEBI regulatory jurisdiction and allow it to look into matters of any deposit-taking activity with a corpus of Rs.100crore or more if no other regulator is looking into it.
- Despite many measures, many illegal deposit-taking schemes are carried out under names such as chit funds, Nidhi schemes and housing schemes and those coming under collective investment schemes (CIS).
- Read at:http://www.thehindu.com/todays-paper/tp-national/sebi-gets-teeth-to-bust-illegal-chit-funds/article6247072.ece