Securities Laws (Amendment) Act, 2014

  • The Securities Laws (Amendment) Act, 2014 (SLAA) was introduced in the backdrop of the shortcomings in the law identified during the recent investigations involving collective investment schemes.
  • The SLAA was aimed at providing SEBI with additional investigative and sanctioning powers to enable SEBI to fulfill its role and purpose as an effective securities market regulator.
Salient features of the Act
  • The new law gave SEBI the power to search and obtain information, including call records, about any suspected entity from within or outside the firm. However, before conducting such searches SEBI must obtain a warrant from a Mumbai court.
  • Any unregistered scheme with a capital of more than a ₹100 crore was deemed as a collective investment schemes, allowing SEBI to regulate it.
  • The minimum penalty for securities related crimes was set at ₹1 lakh. The minimum penalty for insider trading was at ₹10 lakh.
  • SEBI was given the authority to initiate recovery and sale of assets (disgorgement).
  • SEBI has also been given the power to enhance a penalty or settle an ongoing legal proceeding.
  • Guidelines for special courts were also included in the bill.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top