The capital market regulator, Securities and Exchange Board of India may finally get access to Call Data Record (CDR). But, the regulator may not be given the right to tap the phone calls.

According to sources, “This issue was discussed in a meeting held last week. It seems the Finance Ministry is in favour of accepting SEBI’s request. However, this will require an amendment in the Telegraph Act to bring SEBI in the list of classified agencies. We hope to see some action soon.”

The market regulator is seeking access to call data record and e-mail records from the service providers. With this power, the market regulator aims to prevent black money coming into the market as well as to keep an eye on insider trading.

MP’s statement

On August 12, 2011, the Minister of State in the Finance Ministry, Namo Narayan Meena had informed the Lok Sabha, in a written reply, “SEBI had requested for including it in the list of law enforcement/ investigating agencies maintained by the Department of Telecommunications for facilitating receipt of e-mails and Call Data Records from the service providers.”

Though getting call record from the phone service providers may not be difficult, but tracking e-mail will be a real challenge. Most of the e-mail service providers such as Google, Yahoo!, and Hotmail have their servers based outside the country.

Even security agencies have been trying to get access to these services for a long time but have not been able to do so.

Circular money

In the mean time sources told that by tracking e-mail and phone call record, SEBI can check ‘Circular Money.’ There is apprehension that part of money, coming via sub-accounts into the market, is nothing but ‘Circular Money.’ It means money owned by Indian itself but they are investing via tax heaven routes in order to save tax.

On the other hand, SEBI is keen to crack more vigorously the broker-operator-promoter nexus. Although it has good surveillance mechanism, still it feels that phone call data will give another weapon. “Though some experts feel that phone tapping right should be given, but even phone call data will help a lot,” sources told.

Though in the past, SEBI had requested the Government to give phone tapping rights, but was denied. Even in 2009, it pleaded for access to the call data record. But on all the three occasions, SEBI’s request was turned down. (The Hindu)