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Single powerful market regulator need of the hour, says SEBI chief

The Securities and Exchange Board of India chairman D R Mehta today strongly advocated the concept of a single regulatory board to effectively deal with the capital market in the country.

Mehta underlined the need for increase in the powers of the regulatory board to tackle issues mainly related to irregularities in the secondary market.

Mehta referred to the Dhanuka Committee recommendations which clearly asked for consolidation of Securities Contracts (Regulation) Act 1956 and the SEBI Act 1992 into a composite securities legislation and consequent repeal of the two acts.

He said the SEBI should be the sole regulatory agency for the securities market even in the context of certain provisions of the Companies Act.

Mehta urged the Centre to delegate powers as recommended by the Dhanuka Committee.

The SEBI Executive Director Pratip Kar also pointed out various difficulties faced while handling market related issues due to limited powers.

The regulatory board has only played a developmental role while regulating the markets since its inception in 1992, he said.

He said the SEBI reformed the capital market during the last five years.

Owing to lack of powers of attachment, specific powers of disgorgement of ill-gotton profits, powers of search and seizure, and the inadequate quantum of penalty, the SEBI could not take action against the market intermediaries, Kar said.

Mehta pointed out that in the presence of multiple agencies and acts like the Central Bureau of Investigation, the Monopolies and Restrictive Trade Practices Commission, the Department of Company Affairs, consumer fora, the Reserve Bank of India, the Unit Trust of India Act, the SEBI's authority in certain investigations has been challenged in recent days.

UNI

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