The Securities Laws (Amendment) Act, 2014 received the Presidential assent on August 22, 2014. The objective of the Act is to give more powers to SEBI to curb fraud and to protect the investors in the securities market. The Act amends the SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996.
The Act provides following amendments in the SEBI Act, 1992:
- Amendment to Section 11 so as to extend the power of the Board to call for information/records from any person (it thinks fit) or to furnish information to any other authority within India or outside India to prevent the violations of the securities laws.
- Insertion of Clause 11 (5) to credit the amount disgorged to the Investor Protection and Education Fund established by the Board.
- Amendment to Section 11 C to empower the Magistrate or Judge of the designated Court to give order on the application made by the Investigating Authority.
- Amendment to Section 15 A, B, C, D, E, F, G, H, H-A, H-B to revise the amount of penalty imposed under the Act.
- Insertion of Section 15-I (3) to provide power to the Board to enhance the quantum of punishment on consideration of the erroneous order passed by the adjudicating officer.
- Insertion of Section 15 J-B for the settlement of the administrative and civil proceedings.
- Insertion of Section 26 A, B, C, D, E for the establishment of Special Courts to provide speedy trial of offences, and application of provisions of CrPC, 1973 to the proceedings before the Special Court.
- Insertion of Section 28-A to provide procedure for the recovery of the amount on failure by the person to pay the penalty imposed by the adjudicating officer.
- Omission of Section 15 T (2) and Section 26 (2).
The Act provides following amendments in the Securities Contracts (Regulation) Act, 1956:
- Insertion of Section 23-I (3) to provide power to the Board to enhance the quantum of punishment on consideration of the erroneous order passed by the adjudicating officer.
- Insertion of Section 23 J-A for the settlement of the administrative and civil proceedings.
- Insertion of Section 23 J-B to provide procedure for the recovery of the amount on failure by the person to pay the penalty imposed by the adjudicating officer.
- Insertion of Section 26 A, B, C, D, E for the establishment of Special Courts to provide speedy trial of offences, and application of provisions of CrPC, 1973 to the proceedings before the Special Court.
- Amendment to Section 23 A, B, C, D, E, F, G, and H to revise the amount of penalty imposed under the Act.
- Omission of Section 26 (2).
The Act provides following amendments in the Depositories Act, 1996:
- Amendment to Section 19 A, B, C, D, E, F, and G to revise the amount of penalty imposed under the Act.
- Insertion of Section 19 H (3) to provide power to the Board to enhance the quantum of punishment on consideration of the erroneous order passed by the adjudicating officer.
- Insertion of Section 19-IA for the settlement of the administrative and civil proceedings.
- Insertion of Section 19-IB to provide procedure for the recovery of the amount on failure by the person to pay the penalty imposed by the adjudicating officer.
- Insertion of Section 22 C, D, E, F, G for the establishment of Special Courts to provide speedy trial of offences, and application of provisions of CrPC, 1973 to the proceedings before the Special Court.
- Omission of Section 22 (2) and Section 23-A (2).