The Securities Laws

(Amendment) Bill, 2014

NEED FOR AMENDMENT

CHIT FUNDS:A chit fund is a kind of savings scheme practiced in India.  A chit fund company is a company that manages, conducts, or supervises a chit scheme.

NEED FOR AMENDMENTCHIT FUND = CHEAT FUND

Small Investors had deposited their savings in to such schemes and later found themselves cheated.

The existing regulations were not enough to safe guard the investors from such schemes.

NEED FOR AMENDMENT

vs

NEED FOR AMENDMENT

NEED FOR AMENDMENT

NEED FOR AMENDMENT

“INVESTOR PROTECTION”

from illegal deposit taking schemes

EMPOWER THE REGULATOR – S.E.B.I

HIGHLIGHTS OF THE BILL

The Bill proposed amendments & insertion of new sections in the following acts :-

SEBI Act, 1992

Securities Contract (Regulation) Act, 1956

Depositories Act, 1996

HIGHLIGHTS OF THE BILL

POWER TO SEBIRegulate any pooling of

funds of ₹100 Crore & above, if not overseen by any regulator

Recover monetary penalties imposed by it through attachment and sale of assets

HIGHLIGHTS OF THE BILL

POWER TO SEBIArrest and detain an

individual for any failure to comply with its orders

Call for information and records from any person, including banks or other authority

HIGHLIGHTS OF THE BILL

POWER TO SEBIEstablish special courts for

speedy trials of offences under the SEBI Act

Search & Seizure operations on any suspected violator, its premise*

*(after obtaining permission from a magistrate or judge of a court in Mumbai)

HIGHLIGHTS OF THE BILL

DUTY OF

Clearly define the term ‘pooling of funds’

Clarify the applicability & scope of CIS (Collective Investment Scheme)

Bill passed on 8th August, 2014 at Lok

Sabha

Copy of the Bill

ANANND KANKNICOMPANY

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