This article provides a clarification by the Securities and Exchange Board of India (SEBI) regarding a news item that mentioned the formation of an expert committee to suggest changes to the Securities Contract Regulation Act (SCRA). SEBI denies any committee formation or ongoing discussions for enhanced prosecution powers. The clarification aims to address any misunderstandings and provide accurate information.
The news item mentioned the formation of an expert committee by SEBI to suggest changes to the SCRA, along with ongoing discussions for enhanced prosecution powers. However, SEBI has issued a clarification stating that no such committee has been formed or considered for reviewing the SCRA. Additionally, there are no ongoing discussions regarding enhanced prosecution powers for SEBI. This clarification aims to correct any incorrect information and provide accurate details to the public.
SEBI’s clarification sets the record straight regarding the news item that reported the formation of an expert committee for SCRA changes and discussions on enhanced prosecution powers. According to SEBI, no such committee has been formed or considered, and there are no ongoing discussions on enhanced prosecution powers. It is important to rely on accurate information from official sources, and this clarification from SEBI provides the correct understanding of the situation.
Securities and Exchange Board of India
Press Releases No. 13/2023
Incorrect news item
This is with reference to the news item titled “Sebi to set up a panel to suggest changes to SCRA” which appeared on July 14, 2023. The news item states that “The Securities and Exchange Board of India (Sebi) plans to form an expert committee to suggest changes to the 67-year-old Securities Contract Regulation Act (SCRA)… ”. The news item further states that “...there is a discussion going on about enhanced criminal prosecution powers for Sebi – this issue is also likely to be examined by the committee.”
In this connection it is clarified that “SEBI has neither formed nor has considered formation of any such Committee for review of the Securities Contracts (Regulation) Act, 1956 and there are no ongoing discussions for any enhanced prosecution powers for SEBI”.
Mumbai
July 14, 2023
