Securities Laws (Amendment) Act, 2014 - Revision history

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	'''Securities Laws (Amendment) Act, 2014''' is a legislation in [[India]] which provided the [[securities]] market regulator [[Securities and Exchange Board of India]] (SEBI) with new powers to effectively pursue fraudulent investment schemes, especially [[Ponzi scheme]]s.~~<~~ref name=sebi-teeth~~>~~{{cite news\|title=Ponzi menace: Lok Sabha clears bill, Sebi gets more teeth\|url=http://www.hindustantimes.com/business-news/ponzi-menace-lok-sabha-clears-bill-sebi-gets-more-teeth/article1-1249098.aspx\|archive-url=https://web.archive.org/web/20140807022848/http://www.hindustantimes.com/business-news/ponzi-menace-lok-sabha-clears-bill-sebi-gets-more-teeth/article1-1249098.aspx\|url-status=dead\|archive-date=7 August 2014\|access-date=8 August 2014\|work=[[Hindustan Times]]\|date=7 August 2014}}~~<~~/ref~~>~~ The bill also provides guidelines for the formation of special fast trial courts.~~<~~ref name=empowerSEBI~~>~~{{cite news\|title=Bill to empower Sebi introduced in LS\|url=http://www.thestatesman.net/news/69653-bill-to-empower-sebi-introduced-in-ls.html\|access-date=8 August 2014\|work=[[The Statesman (India)\|The Statesman]]\|agency=Press Trust of India\|date=4 August 2014}}~~<~~/ref~~>~~		'''Securities Laws (Amendment) Act, 2014''' is a legislation in [[India]] which provided the [[securities]] market regulator [[Securities and Exchange Board of India]] (SEBI) with new powers to effectively pursue fraudulent investment schemes, especially [[Ponzi scheme]]s.<ref name=sebi-teeth>{{cite news\|title=Ponzi menace: Lok Sabha clears bill, Sebi gets more teeth\|url=http://www.hindustantimes.com/business-news/ponzi-menace-lok-sabha-clears-bill-sebi-gets-more-teeth/article1-1249098.aspx\|archive-url=https://web.archive.org/web/20140807022848/http://www.hindustantimes.com/business-news/ponzi-menace-lok-sabha-clears-bill-sebi-gets-more-teeth/article1-1249098.aspx\|url-status=dead\|archive-date=7 August 2014\|access-date=8 August 2014\|work=[[Hindustan Times]]\|date=7 August 2014}}</ref> The bill also provides guidelines for the formation of special fast trial courts.<ref name=empowerSEBI>{{cite news\|title=Bill to empower Sebi introduced in LS\|url=http://www.thestatesman.net/news/69653-bill-to-empower-sebi-introduced-in-ls.html\|access-date=8 August 2014\|work=[[The Statesman (India)\|The Statesman]]\|agency=Press Trust of India\|date=4 August 2014}}</ref>

	==History==		==History==
	After the [[Saradha Group financial scandal]], the Government of India formed an inter-ministerial group to find ways to close off loopholes the regulations which allowed such [[pyramid scheme]]s to operate.~~<~~ref name=saradha~~>~~{{cite news\|title=Presidential ordinance grants Sebi more powers\|url=http://www.livemint.com/Politics/rEoGCnR4vSgamkiasujmMP/Presidential-ordinance-grants-Sebi-more-powers.html\|access-date=9 August 2014\|work=[[Live Mint]]\|date=18 July 2013}}~~<~~/ref~~>~~ The Securities Law (Amendment) Ordinance was promulgated on 17 July 2013, then for a second time in September 2013. It lapsed on 15 January 2014.~~<~~ref name=ordinance~~>~~{{cite news\|title=Cabinet likely to consider proposal for Sebi ordinance today\|url=http://indianexpress.com/article/business/companies/cabinet-likely-to-consider-proposal-for-sebi-ordinance-today/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=28 February 2014}}~~<~~/ref~~><~~ref name=third-time~~>~~{{cite news\|title=Power to Sebi: Ordinance promulgated for third time\|url=http://indianexpress.com/article/business/business-others/power-to-sebi-ordinance-promulgated-for-third-time/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=28 March 2014}}~~<~~/ref~~>~~ The bill couldn't be presented in the winter session of Parliament as the standing committee on finance had not finalized the report. It promulgated for a third time on 28 March 2014.~~<~~ref name=third-time/~~>~~		After the [[Saradha Group financial scandal]], the Government of India formed an inter-ministerial group to find ways to close off loopholes the regulations which allowed such [[pyramid scheme]]s to operate.<ref name=saradha>{{cite news\|title=Presidential ordinance grants Sebi more powers\|url=http://www.livemint.com/Politics/rEoGCnR4vSgamkiasujmMP/Presidential-ordinance-grants-Sebi-more-powers.html\|access-date=9 August 2014\|work=[[Live Mint]]\|date=18 July 2013}}</ref> The Securities Law (Amendment) Ordinance was promulgated on 17 July 2013, then for a second time in September 2013. It lapsed on 15 January 2014.<ref name=ordinance>{{cite news\|title=Cabinet likely to consider proposal for Sebi ordinance today\|url=http://indianexpress.com/article/business/companies/cabinet-likely-to-consider-proposal-for-sebi-ordinance-today/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=28 February 2014}}</ref><ref name=third-time>{{cite news\|title=Power to Sebi: Ordinance promulgated for third time\|url=http://indianexpress.com/article/business/business-others/power-to-sebi-ordinance-promulgated-for-third-time/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=28 March 2014}}</ref> The bill couldn't be presented in the winter session of Parliament as the standing committee on finance had not finalized the report. It promulgated for a third time on 28 March 2014.<ref name=third-time/>

	On 24 July 2014, [[National e-Governance Plan#Cabinet Committee on Economic Affairs .28CCEA.29\|Cabinet Committee on Economic Affairs]] (CCEA) approved the bill.~~<~~ref name=cabinet-clears~~>~~{{cite news\|title=Cabinet clears bill to empower Sebi to deal with ponzi schemes\|url=http://indianexpress.com/article/business/business-others/cabinet-clears-bill-to-empower-sebi-to-deal-with-ponzi-schemes/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=24 July 2014}}~~<~~/ref~~>~~ The bill was introduced by [[Minister of State]] for Finance [[Nirmala Sitharaman]] in the [[Lok Sabha]] on 4 August 2014. She also introduced bills to amend Securities Contracts (Regulation) Act, 1956 and [[Depositories Act]], 1996. The bills were introduced in the name of [[Finance Minister]] [[Arun Jaitley]], but he himself was unable to attend the house.~~<~~ref name=empowerSEBI/~~>~~ The bill was passed by the Lok Sabha on 6 August 2014.~~<~~ref name=sebi-teeth/~~>~~		On 24 July 2014, [[National e-Governance Plan#Cabinet Committee on Economic Affairs .28CCEA.29\|Cabinet Committee on Economic Affairs]] (CCEA) approved the bill.<ref name=cabinet-clears>{{cite news\|title=Cabinet clears bill to empower Sebi to deal with ponzi schemes\|url=http://indianexpress.com/article/business/business-others/cabinet-clears-bill-to-empower-sebi-to-deal-with-ponzi-schemes/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=24 July 2014}}</ref> The bill was introduced by [[Minister of State]] for Finance [[Nirmala Sitharaman]] in the [[Lok Sabha]] on 4 August 2014. She also introduced bills to amend Securities Contracts (Regulation) Act, 1956 and [[Depositories Act]], 1996. The bills were introduced in the name of [[Finance Minister]] [[Arun Jaitley]], but he himself was unable to attend the house.<ref name=empowerSEBI/> The bill was passed by the Lok Sabha on 6 August 2014.<ref name=sebi-teeth/>

	==Summary==		==Summary==
	The ordinance passed in March 2014 had 30 clauses, whereas the bill contained 57 clauses. The bill amended three pre-existing market related laws. It retained the powers given to SEBI in the ordinance, but also introduced safeguards against misuse.~~<~~ref name=tweaks~~>~~{{cite news\|title=New Sebi bill tweaks provisions for penalties, seizures\|url=http://articles.economictimes.indiatimes.com/2014-08-04/news/52428345_1_new-sebi-rs-10-lakh-greater-powers\|archive-url=https://web.archive.org/web/20140807075401/http://articles.economictimes.indiatimes.com/2014-08-04/news/52428345_1_new-sebi-rs-10-lakh-greater-powers\|url-status=dead\|archive-date=7 August 2014\|access-date=9 August 2014\|work=[[The Economic Times]]\|date=4 Aug 2014}}~~<~~/ref~~>~~		The ordinance passed in March 2014 had 30 clauses, whereas the bill contained 57 clauses. The bill amended three pre-existing market related laws. It retained the powers given to SEBI in the ordinance, but also introduced safeguards against misuse.<ref name=tweaks>{{cite news\|title=New Sebi bill tweaks provisions for penalties, seizures\|url=http://articles.economictimes.indiatimes.com/2014-08-04/news/52428345_1_new-sebi-rs-10-lakh-greater-powers\|archive-url=https://web.archive.org/web/20140807075401/http://articles.economictimes.indiatimes.com/2014-08-04/news/52428345_1_new-sebi-rs-10-lakh-greater-powers\|url-status=dead\|archive-date=7 August 2014\|access-date=9 August 2014\|work=[[The Economic Times]]\|date=4 Aug 2014}}</ref>

	The new law gave SEBI the power to search and obtain information, including call records,~~<~~ref name=tweaks/~~>~~ about any suspected entity from within or outside the firm. However, before conducting such searches SEBI must obtain a warrant from a [[Mumbai]] court.~~<~~ref name=tackle~~>~~{{cite news\|title=Lok Sabha passes Bill to give teeth to Sebi to tackle ponzi menace\|url=http://articles.economictimes.indiatimes.com/2014-08-06/news/52514591_1_ponzi-menace-such-ponzi-schemes-fraudulent-investment-schemes\|archive-url=https://web.archive.org/web/20140809150721/http://articles.economictimes.indiatimes.com/2014-08-06/news/52514591_1_ponzi-menace-such-ponzi-schemes-fraudulent-investment-schemes\|url-status=dead\|archive-date=9 August 2014\|access-date=8 August 2014\|work=[[The Economic Times]]\|date=6 August 2014}}~~<~~/ref~~>~~ Any unregistered scheme with a capital of more than a {{currency\|100\|INR}} [[crore]] was deemed a [[collective investment scheme]], allowing SEBI to regulate it.~~<~~ref name=empowerSEBI/~~>~~ Under pre-existing regulations, all collective investment schemes had to register with SEBI. However, many came to SEBI's attention only after complaints from defrauded investors.~~<~~ref name=sebi-teeth/~~>~~		The new law gave SEBI the power to search and obtain information, including call records,<ref name=tweaks/> about any suspected entity from within or outside the firm. However, before conducting such searches SEBI must obtain a warrant from a [[Mumbai]] court.<ref name=tackle>{{cite news\|title=Lok Sabha passes Bill to give teeth to Sebi to tackle ponzi menace\|url=http://articles.economictimes.indiatimes.com/2014-08-06/news/52514591_1_ponzi-menace-such-ponzi-schemes-fraudulent-investment-schemes\|archive-url=https://web.archive.org/web/20140809150721/http://articles.economictimes.indiatimes.com/2014-08-06/news/52514591_1_ponzi-menace-such-ponzi-schemes-fraudulent-investment-schemes\|url-status=dead\|archive-date=9 August 2014\|access-date=8 August 2014\|work=[[The Economic Times]]\|date=6 August 2014}}</ref> Any unregistered scheme with a capital of more than a {{currency\|100\|INR}} [[crore]] was deemed a [[collective investment scheme]], allowing SEBI to regulate it.<ref name=empowerSEBI/> Under pre-existing regulations, all collective investment schemes had to register with SEBI. However, many came to SEBI's attention only after complaints from defrauded investors.<ref name=sebi-teeth/>

	Depending on the nature of the crime, minimum penalties may range from {{currency\|1\|INR}} [[lakh]] to {{currency\|10\|INR}} lakh. The minimum penalty for securities related crimes was set at {{currency\|1\|INR}} lakh. The minimum penalty for [[insider trading]] was at {{currency\|10\|INR}} lakh. The maximum penalty for [[insider trading]] was set at {{currency\|25\|INR}} crore or three times the profit, whichever was higher. SEBI was given the authority to initiate recovery and sale of assets. 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.~~<~~ref name=tweaks/~~>~~		Depending on the nature of the crime, minimum penalties may range from {{currency\|1\|INR}} [[lakh]] to {{currency\|10\|INR}} lakh. The minimum penalty for securities related crimes was set at {{currency\|1\|INR}} lakh. The minimum penalty for [[insider trading]] was at {{currency\|10\|INR}} lakh. The maximum penalty for [[insider trading]] was set at {{currency\|25\|INR}} crore or three times the profit, whichever was higher. SEBI was given the authority to initiate recovery and sale of assets. 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.<ref name=tweaks/>

	==See also==		==See also==

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	'''Securities Laws (Amendment) Act, 2014''' is a legislation in [[India]] which provided the [[securities]] market regulator [[Securities and Exchange Board of India]] (SEBI) with new powers to effectively pursue fraudulent investment schemes, especially [[~~ponzi~~ scheme]]s.<ref name=sebi-teeth>{{cite news\|title=Ponzi menace: Lok Sabha clears bill, Sebi gets more teeth\|url=http://www.hindustantimes.com/business-news/ponzi-menace-lok-sabha-clears-bill-sebi-gets-more-teeth/article1-1249098.aspx\|archive-url=https://web.archive.org/web/20140807022848/http://www.hindustantimes.com/business-news/ponzi-menace-lok-sabha-clears-bill-sebi-gets-more-teeth/article1-1249098.aspx\|url-status=dead\|archive-date=7 August 2014\|access-date=8 August 2014\|work=[[Hindustan Times]]\|date=7 August 2014}}</ref> The bill also provides guidelines for the formation of special fast trial courts.<ref name=empowerSEBI>{{cite news\|title=Bill to empower Sebi introduced in LS\|url=http://www.thestatesman.net/news/69653-bill-to-empower-sebi-introduced-in-ls.html\|access-date=8 August 2014\|work=[[The Statesman (India)\|The Statesman]]\|agency=Press Trust of India\|date=4 August 2014}}</ref>		'''Securities Laws (Amendment) Act, 2014''' is a legislation in [[India]] which provided the [[securities]] market regulator [[Securities and Exchange Board of India]] (SEBI) with new powers to effectively pursue fraudulent investment schemes, especially [[Ponzi scheme]]s.<ref name=sebi-teeth>{{cite news\|title=Ponzi menace: Lok Sabha clears bill, Sebi gets more teeth\|url=http://www.hindustantimes.com/business-news/ponzi-menace-lok-sabha-clears-bill-sebi-gets-more-teeth/article1-1249098.aspx\|archive-url=https://web.archive.org/web/20140807022848/http://www.hindustantimes.com/business-news/ponzi-menace-lok-sabha-clears-bill-sebi-gets-more-teeth/article1-1249098.aspx\|url-status=dead\|archive-date=7 August 2014\|access-date=8 August 2014\|work=[[Hindustan Times]]\|date=7 August 2014}}</ref> The bill also provides guidelines for the formation of special fast trial courts.<ref name=empowerSEBI>{{cite news\|title=Bill to empower Sebi introduced in LS\|url=http://www.thestatesman.net/news/69653-bill-to-empower-sebi-introduced-in-ls.html\|access-date=8 August 2014\|work=[[The Statesman (India)\|The Statesman]]\|agency=Press Trust of India\|date=4 August 2014}}</ref>

	==History==		==History==
	After the [[Saradha Group financial scandal]], the Government of India formed an inter-ministerial group to find ways to close off loopholes the regulations which allowed such [[pyramid scheme]]s to operate.<ref name=saradha>{{cite news\|title=Presidential ordinance grants Sebi more powers\|url=http://www.livemint.com/Politics/rEoGCnR4vSgamkiasujmMP/Presidential-ordinance-grants-Sebi-more-powers.html\|access-date=9 August 2014\|work=[[Live Mint]]\|date=18 July 2013}}</ref> The Securities Law (Amendment) Ordinance was promulgated on 17 July 2013, then for a second time in September 2013. It lapsed on 15 January 2014.<ref name=ordinance>{{cite news\|title=Cabinet likely to consider proposal for Sebi ordinance today\|url=http://indianexpress.com/article/business/companies/cabinet-likely-to-consider-proposal-for-sebi-ordinance-today/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=28 February 2014}}</ref><ref name=third-time>{{cite news\|title=Power to Sebi: Ordinance promulgated for third time\|url=http://indianexpress.com/article/business/business-others/power-to-sebi-ordinance-promulgated-for-third-time/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=28 March 2014}}</ref> The bill couldn't be presented in the winter session of Parliament as the standing committee on finance had not finalized the report. It promulgated for a third time on 28 March 2014.<ref name=third-time/>		After the [[Saradha Group financial scandal]], the Government of India formed an inter-ministerial group to find ways to close off loopholes the regulations which allowed such [[pyramid scheme]]s to operate.<ref name=saradha>{{cite news\|title=Presidential ordinance grants Sebi more powers\|url=http://www.livemint.com/Politics/rEoGCnR4vSgamkiasujmMP/Presidential-ordinance-grants-Sebi-more-powers.html\|access-date=9 August 2014\|work=[[Live Mint]]\|date=18 July 2013}}</ref> The Securities Law (Amendment) Ordinance was promulgated on 17 July 2013, then for a second time in September 2013. It lapsed on 15 January 2014.<ref name=ordinance>{{cite news\|title=Cabinet likely to consider proposal for Sebi ordinance today\|url=http://indianexpress.com/article/business/companies/cabinet-likely-to-consider-proposal-for-sebi-ordinance-today/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=28 February 2014}}</ref><ref name=third-time>{{cite news\|title=Power to Sebi: Ordinance promulgated for third time\|url=http://indianexpress.com/article/business/business-others/power-to-sebi-ordinance-promulgated-for-third-time/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=28 March 2014}}</ref> The bill couldn't be presented in the winter session of Parliament as the standing committee on finance had not finalized the report. It promulgated for a third time on 28 March 2014.<ref name=third-time/>

	On 24 July 2014, [[National e-Governance Plan#Cabinet Committee on Economic Affairs .28CCEA.29\|Cabinet Committee on Economic Affairs]] (CCEA) approved the bill.<ref name=cabinet-clears>{{cite news\|title=Cabinet clears bill to empower Sebi to deal with ponzi schemes\|url=http://indianexpress.com/article/business/business-others/cabinet-clears-bill-to-empower-sebi-to-deal-with-ponzi-schemes/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=24 July 2014}}</ref> The bill was introduced by [[Minister of State]] for Finance [[Nirmala Sitharaman]] in the [[Lok Sabha]] on 4 August 2014. She also introduced bills to amend Securities Contracts (Regulation) Act, 1956 and [[Depositories Act]], 1996. The bills were introduced in the name of [[Finance Minister]] [[Arun Jaitley]], but he himself was unable to attend the house.<ref name=empowerSEBI/> The bill was passed by the Lok Sabha on 6 August 2014.<ref name=sebi-teeth/>		On 24 July 2014, [[National e-Governance Plan#Cabinet Committee on Economic Affairs .28CCEA.29\|Cabinet Committee on Economic Affairs]] (CCEA) approved the bill.<ref name=cabinet-clears>{{cite news\|title=Cabinet clears bill to empower Sebi to deal with ponzi schemes\|url=http://indianexpress.com/article/business/business-others/cabinet-clears-bill-to-empower-sebi-to-deal-with-ponzi-schemes/\|access-date=8 August 2014\|work=[[The Indian Express]]\|date=24 July 2014}}</ref> The bill was introduced by [[Minister of State]] for Finance [[Nirmala Sitharaman]] in the [[Lok Sabha]] on 4 August 2014. She also introduced bills to amend Securities Contracts (Regulation) Act, 1956 and [[Depositories Act]], 1996. The bills were introduced in the name of [[Finance Minister]] [[Arun Jaitley]], but he himself was unable to attend the house.<ref name=empowerSEBI/> The bill was passed by the Lok Sabha on 6 August 2014.<ref name=sebi-teeth/>

	==Summary==		==Summary==
	The ordinance passed in March 2014 had 30 clauses, whereas the bill contained 57 clauses. The bill amended three pre-existing market related laws. It retained the powers given to SEBI in the ordinance, but also introduced safeguards against misuse.<ref name=tweaks>{{cite news\|title=New Sebi bill tweaks provisions for penalties, seizures\|url=http://articles.economictimes.indiatimes.com/2014-08-04/news/52428345_1_new-sebi-rs-10-lakh-greater-powers\|access-date=9 August 2014\|work=[[The Economic Times]]\|date=4 Aug 2014}}</ref>		The ordinance passed in March 2014 had 30 clauses, whereas the bill contained 57 clauses. The bill amended three pre-existing market related laws. It retained the powers given to SEBI in the ordinance, but also introduced safeguards against misuse.<ref name=tweaks>{{cite news\|title=New Sebi bill tweaks provisions for penalties, seizures\|url=http://articles.economictimes.indiatimes.com/2014-08-04/news/52428345_1_new-sebi-rs-10-lakh-greater-powers\|archive-url=https://web.archive.org/web/20140807075401/http://articles.economictimes.indiatimes.com/2014-08-04/news/52428345_1_new-sebi-rs-10-lakh-greater-powers\|url-status=dead\|archive-date=7 August 2014\|access-date=9 August 2014\|work=[[The Economic Times]]\|date=4 Aug 2014}}</ref>

	The new law gave SEBI the power to search and obtain information, including call records,<ref name=tweaks/> about any suspected entity from within or outside the firm. However, before conducting such searches SEBI must obtain a warrant from a [[Mumbai]] court.<ref name=tackle>{{cite news\|title=Lok Sabha passes Bill to give teeth to Sebi to tackle ponzi menace\|url=http://articles.economictimes.indiatimes.com/2014-08-06/news/52514591_1_ponzi-menace-such-ponzi-schemes-fraudulent-investment-schemes\|access-date=8 August 2014\|work=[[The Economic Times]]\|date=6 August 2014}}</ref> Any unregistered scheme with a capital of more than a {{currency\|100\|INR}} [[crore]] was deemed a [[collective investment scheme]], allowing SEBI to regulate it.<ref name=empowerSEBI/> Under pre-existing regulations, all collective investment schemes had to register with SEBI. However, many came to SEBI's attention only after complaints from defrauded investors.<ref name=sebi-teeth/>		The new law gave SEBI the power to search and obtain information, including call records,<ref name=tweaks/> about any suspected entity from within or outside the firm. However, before conducting such searches SEBI must obtain a warrant from a [[Mumbai]] court.<ref name=tackle>{{cite news\|title=Lok Sabha passes Bill to give teeth to Sebi to tackle ponzi menace\|url=http://articles.economictimes.indiatimes.com/2014-08-06/news/52514591_1_ponzi-menace-such-ponzi-schemes-fraudulent-investment-schemes\|archive-url=https://web.archive.org/web/20140809150721/http://articles.economictimes.indiatimes.com/2014-08-06/news/52514591_1_ponzi-menace-such-ponzi-schemes-fraudulent-investment-schemes\|url-status=dead\|archive-date=9 August 2014\|access-date=8 August 2014\|work=[[The Economic Times]]\|date=6 August 2014}}</ref> Any unregistered scheme with a capital of more than a {{currency\|100\|INR}} [[crore]] was deemed a [[collective investment scheme]], allowing SEBI to regulate it.<ref name=empowerSEBI/> Under pre-existing regulations, all collective investment schemes had to register with SEBI. However, many came to SEBI's attention only after complaints from defrauded investors.<ref name=sebi-teeth/>

	Depending on the nature of the crime, minimum penalties may range from {{currency\|1\|INR}} [[lakh]] to {{currency\|10\|INR}} lakh. The minimum penalty for securities related crimes was set at {{currency\|1\|INR}} lakh. The minimum penalty for [[insider trading]] was at {{currency\|10\|INR}} lakh. The maximum penalty for [[insider trading]] was set at {{currency\|25\|INR}} crore or three times the profit, whichever was higher. SEBI was given the authority to initiate recovery and sale of assets. 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.<ref name=tweaks/>		Depending on the nature of the crime, minimum penalties may range from {{currency\|1\|INR}} [[lakh]] to {{currency\|10\|INR}} lakh. The minimum penalty for securities related crimes was set at {{currency\|1\|INR}} lakh. The minimum penalty for [[insider trading]] was at {{currency\|10\|INR}} lakh. The maximum penalty for [[insider trading]] was set at {{currency\|25\|INR}} crore or three times the profit, whichever was higher. SEBI was given the authority to initiate recovery and sale of assets. 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.<ref name=tweaks/>

	==See also==		==See also==
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	==References==		==References==
	{{reflist}}		{{reflist}}

	~~{{Indian legislations}}~~

	[[Category:Securities and Exchange Board of India]]		[[Category:Securities and Exchange Board of India]]

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{{use dmy dates|date=March 2016}}
{{use Indian English|date=March 2016}}
{{Infobox legislation
| short_title = Securities Laws (Amendment) Bill, 2014
| imagesize = 150
| long_title = An Act further to amend the Securities and Exchange Board of India Act, 1992, the
Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996
| citation = [http://www.finmin.nic.in/law/The%20Securities%20Laws%20Amendment%20Act%202014.pdf Act No. 27 of 2014]
| territorial_extent = Whole of [[India]]
| enacted_by = [[Parliament of India]]
| date_assented = 22 August 2014
| date_commenced = 25 August 2014
| status = in force
}}
'''Securities Laws (Amendment) Act, 2014''' is a legislation in [[India]] which provided the [[securities]] market regulator [[Securities and Exchange Board of India]] (SEBI) with new powers to effectively pursue fraudulent investment schemes, especially [[ponzi scheme]]s.<ref name=sebi-teeth>{{cite news|title=Ponzi menace: Lok Sabha clears bill, Sebi gets more teeth|url=http://www.hindustantimes.com/business-news/ponzi-menace-lok-sabha-clears-bill-sebi-gets-more-teeth/article1-1249098.aspx|archive-url=https://web.archive.org/web/20140807022848/http://www.hindustantimes.com/business-news/ponzi-menace-lok-sabha-clears-bill-sebi-gets-more-teeth/article1-1249098.aspx|url-status=dead|archive-date=7 August 2014|access-date=8 August 2014|work=[[Hindustan Times]]|date=7 August 2014}}</ref> The bill also provides guidelines for the formation of special fast trial courts.<ref name=empowerSEBI>{{cite news|title=Bill to empower Sebi introduced in LS|url=http://www.thestatesman.net/news/69653-bill-to-empower-sebi-introduced-in-ls.html|access-date=8 August 2014|work=[[The Statesman (India)|The Statesman]]|agency=Press Trust of India|date=4 August 2014}}</ref>

==History==
After the [[Saradha Group financial scandal]], the Government of India formed an inter-ministerial group to find ways to close off loopholes the regulations which allowed such [[pyramid scheme]]s to operate.<ref name=saradha>{{cite news|title=Presidential ordinance grants Sebi more powers|url=http://www.livemint.com/Politics/rEoGCnR4vSgamkiasujmMP/Presidential-ordinance-grants-Sebi-more-powers.html|access-date=9 August 2014|work=[[Live Mint]]|date=18 July 2013}}</ref> The Securities Law (Amendment) Ordinance was promulgated on 17 July 2013, then for a second time in September 2013. It lapsed on 15 January 2014.<ref name=ordinance>{{cite news|title=Cabinet likely to consider proposal for Sebi ordinance today|url=http://indianexpress.com/article/business/companies/cabinet-likely-to-consider-proposal-for-sebi-ordinance-today/|access-date=8 August 2014|work=[[The Indian Express]]|date=28 February 2014}}</ref><ref name=third-time>{{cite news|title=Power to Sebi: Ordinance promulgated for third time|url=http://indianexpress.com/article/business/business-others/power-to-sebi-ordinance-promulgated-for-third-time/|access-date=8 August 2014|work=[[The Indian Express]]|date=28 March 2014}}</ref> The bill couldn't be presented in the winter session of Parliament as the standing committee on finance had not finalized the report. It promulgated for a third time on 28 March 2014.<ref name=third-time/>

On 24 July 2014, [[National e-Governance Plan#Cabinet Committee on Economic Affairs .28CCEA.29|Cabinet Committee on Economic Affairs]] (CCEA) approved the bill.<ref name=cabinet-clears>{{cite news|title=Cabinet clears bill to empower Sebi to deal with ponzi schemes|url=http://indianexpress.com/article/business/business-others/cabinet-clears-bill-to-empower-sebi-to-deal-with-ponzi-schemes/|access-date=8 August 2014|work=[[The Indian Express]]|date=24 July 2014}}</ref> The bill was introduced by [[Minister of State]] for Finance [[Nirmala Sitharaman]] in the [[Lok Sabha]] on 4 August 2014. She also introduced bills to amend Securities Contracts (Regulation) Act, 1956 and [[Depositories Act]], 1996. The bills were introduced in the name of [[Finance Minister]] [[Arun Jaitley]], but he himself was unable to attend the house.<ref name=empowerSEBI/> The bill was passed by the Lok Sabha on 6 August 2014.<ref name=sebi-teeth/>

==Summary==
The ordinance passed in March 2014 had 30 clauses, whereas the bill contained 57 clauses. The bill amended three pre-existing market related laws. It retained the powers given to SEBI in the ordinance, but also introduced safeguards against misuse.<ref name=tweaks>{{cite news|title=New Sebi bill tweaks provisions for penalties, seizures|url=http://articles.economictimes.indiatimes.com/2014-08-04/news/52428345_1_new-sebi-rs-10-lakh-greater-powers|access-date=9 August 2014|work=[[The Economic Times]]|date=4 Aug 2014}}</ref>

The new law gave SEBI the power to search and obtain information, including call records,<ref name=tweaks/> about any suspected entity from within or outside the firm. However, before conducting such searches SEBI must obtain a warrant from a [[Mumbai]] court.<ref name=tackle>{{cite news|title=Lok Sabha passes Bill to give teeth to Sebi to tackle ponzi menace|url=http://articles.economictimes.indiatimes.com/2014-08-06/news/52514591_1_ponzi-menace-such-ponzi-schemes-fraudulent-investment-schemes|access-date=8 August 2014|work=[[The Economic Times]]|date=6 August 2014}}</ref> Any unregistered scheme with a capital of more than a {{currency|100|INR}} [[crore]] was deemed a [[collective investment scheme]], allowing SEBI to regulate it.<ref name=empowerSEBI/> Under pre-existing regulations, all collective investment schemes had to register with SEBI. However, many came to SEBI's attention only after complaints from defrauded investors.<ref name=sebi-teeth/>

Depending on the nature of the crime, minimum penalties may range from {{currency|1|INR}} [[lakh]] to {{currency|10|INR}} lakh. The minimum penalty for securities related crimes was set at {{currency|1|INR}} lakh. The minimum penalty for [[insider trading]] was at {{currency|10|INR}} lakh. The maximum penalty for [[insider trading]] was set at {{currency|25|INR}} crore or three times the profit, whichever was higher. SEBI was given the authority to initiate recovery and sale of assets. 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.<ref name=tweaks/>

==See also==
* [[Saradha Group financial scandal]]
* [[Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012]]

==References==
{{reflist}}

{{Indian legislations}}

[[Category:Securities and Exchange Board of India]]
[[Category:Indian business law]]
[[Category:Acts of the Parliament of India 2014]]
[[Category:2014 in Indian economy]]
[[Category:Modi administration]]
[[Category:Securities (finance)]]