Business Ethics and Corporate Governance, Second Edition

STRENGTHENING OF SEBI

In January 1995, the Government of India promulgated an Ordinance to amend SEBI Act, 1992, so as to arm the regulator with additional powers for ensuring the orderly development of the capital market and to enhance its ability to protect the interests of investors. The important features of this Ordinance are the following:

1. To enable SEBI to respond speedily to market conditions and to reinforce its autonomy, it has been empowered to file complaints in courts and to notify its regulations without prior approval of the government.
2. SEBI is now provided with regulatory powers over companies in the issuance of capital, the transfer of securities and other related matters.
3. SEBI is now empowered to impose monetary penalties on ...