Providing more powers to capital markets watchdog SEBI to deal with fraudulent collective schemes, Lok Sabha passes the crucial Securities Laws (Amendment) Bill, 2014 aimed at tackling the ponzi menace. The Bill, 2014, has been brought in the backdrop of lakhs of small investors being duped by fraudulent investment schemes, like in the alleged Saradha scam.
The Securities Laws (Amendment) Bill, 2014 will allow SEBI search and seizure powers and seek information and call records from even those firms not directly related to securities market. However, the market regulator will have to take approval from designated court in Mumbai before using these powers.
Further, the government is also of the view that financial inclusion will help to check the menace of ponzi scheme. Prime Minister Narendra Modi is slated to launch the Financial Inclusion Mission on Independence Day. About 60 percent of the population in India does not have bank accounts and the Financial Inclusion Mission envisages making two bank accounts per family mandatory. The mission envisages giving a Rs 5,000 overdraft facility to around 8 crore new account holders and credit guarantee fund will provide a cushion to banks and cover defaults in overdraft accounts.
The Securities Laws (Amendment) Bill, 2014 will allow SEBI search and seizure powers and seek information and call records from even those firms not directly related to securities market. However, the market regulator will have to take approval from designated court in Mumbai before using these powers.
Further, the government is also of the view that financial inclusion will help to check the menace of ponzi scheme. Prime Minister Narendra Modi is slated to launch the Financial Inclusion Mission on Independence Day. About 60 percent of the population in India does not have bank accounts and the Financial Inclusion Mission envisages making two bank accounts per family mandatory. The mission envisages giving a Rs 5,000 overdraft facility to around 8 crore new account holders and credit guarantee fund will provide a cushion to banks and cover defaults in overdraft accounts.
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