Accordingly, a proposal to amend Sebi's CIS norms was been approved to provide for a framework for regulation of all activities deemed to be CIS schemes. The changes also provide for additional requirements for continuous compliance by a registered CIS entities.
The ordinance also confers direct powers to Sebi Chairman to authorise an Investigating Authority or any other officer of Sebi to search any premises where incriminating documents are lying and seize such documents for investigation purpose. The ordinance also empowers Sebi to make regulations for executing the search operations and to ensure safe custody of any books of account or other documents that are seized.
In this respect, the board approved Sebi (Procedure for Search and Seizure) Regulations, 2013, which is on the lines of the provisions in the Income Tax Act and provides detailed procedures for such search and seizures by the regulator. The board also approved Sebi (Settlement of Administrative and Civil Proceedings) Regulations, 2013, which have been framed, keeping in view the provisions of the Ordinance and public comments received by Sebi in this regard.
The key features of this new regulation include a common substantive procedure for settlement of administrative and civil proceedings under all the securities laws, while it also formalises the already existing settlement process.
The new norms also provide for guiding factors for dealing with the settlement process, while serious offences such as insider trading are excluded from the scope of settlement.
In order to impart transparency in the process, the roles of the internal committee and high powered advisory committee are specifically defined, while the regulations also provide for terms of settlement in monetary as well as non-monetary terms or combination of both.
