Sebi proposes new norms for search and seizure powers

Securities and Exchange Board of India (Sebi) has laid down the framework for 'search and seizure' operations to conduct investigations more effectively.

Before officially notification, the stock market regulator today today issued draft 'Procedure for Search and Seizure Regulations 2013' and invited public comments on it till the end of the month.

The new regulation gives Sebi powers, similar to the income tax department, of seeking information from any individual, may or may not connected with the stock market.

It also allows Sebi to enter and search any building, vessel or aircraft, break open a lock or door, search any suspicious person and record statement under oath and also seizure any documents.

Sebi chairman has to authorize a search and search operation to an investigating officer after he is convinced that it is necessary by issuing a warrant of authority in writing.

In July, Securities Laws (Amendment) Second Ordinance, 2013 was promulgated which gave Sebi new powers of search and seizure, along with attachment of properties. Sebi has already started attached more than 150 bank accounts to recover dues to the tune of Rs 1,500 crore from violators. (Business Standard / PTI)