SEBI to the rescue of those duped
by ponzi schemes to get their back money
The Securities and Exchange Board of
India (SEBI) said its new powers would help in recovery of money from the
fraudulent firms and return them to the investors. The recent amendments have
empowered the SEBI to initiate stringent action against unauthorised chit funds
and other financial agencies running a business violating rules and
regulations.
"Through the new ordinance, SEBI
can search and seize ponzi companies besides recovering their properties and
returning it to the investors," SEBI Chairman UK Sinha told a national
seminar on 'Investors Education and Protection for Inclusive Growth' in
Bhubaneswar.
Stating that the regulator was
determined to comedown heavily on ponzi companies, Sinha said "SEBI has
taken several initiatives to protect the interests of the common
investors". In a major upgrade of powers given to SEBI, the government has
allowed it to pass orders like search and seizure, attachment of properties,
arrest and detention of defaulters and pass disgorgement directions to recover
the wrongful gains made in contravention of laws. As per amended law, Sebi can
regulate any money pooling scheme worth Rs 100 crore or more and attach assets
in cases of non-compliance.
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