Fostering Enforcement Mechanisms: The Regulatory Challenge Asian Roundtable Bangkok, 13 – 14 -15 September 2006. Presentation by M.K. Chouhan Chairman, Mahendra & Young Knowledge Foundation Vice Chairman, Global Advisory Board - Asian Centre for Corporate Governance. Empowerment issue.
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M.K. ChouhanChairman, Mahendra & Young Knowledge Foundation
Vice Chairman, Global Advisory Board - Asian Centre for Corporate Governance
Adequate empowerment has been given to SEBI
Thus , SEBI is reasonably empowered
Criminal prosecution :
Eg Out of 1000 cases filed most are at stage of summons.
Enforcement Obstacles :
Power vested with other law enforcement agency like CBI or Police are not with SEBI.
Separate powers for Enquiry, adjudication & administration – delay decisions
1. Enquiry Officer – Authority for Suspension of Certification
2. Member of SEBI – Authority to for Administration / Direction i.e. Debarring from operating in securities Market.
3. Adjudication Officer–Authority for Monetary Penalty
A Broker - Ketan Parekh has been debarred for 14 years from dealing in Securities Market
The cases are settled in the following manner
SEBI to Securities Appellate Tribunal (SAT), to Supreme Court
Enforcement at various levels :
– Broker SROs
– Mutual Funds SROs
Eg. If fraudulent allotment is made by a promoter, it can be debarred for some time, but chances are that these securities might again come to the Market.
Justice delayed is justice denied