President Pranab Mukherjee on 30 March 2014 cleared the re-promulgation of the SEBI Ordinance Securities Laws (Amendment) Bill 2013. The ordinance aims to give powers to Securities and Exchanges Board of India (SEBI) to act against Ponzi scheme.
The Ordinance empowers the SEBI to order search and seizure and crack down on Ponzi schemes and to demand information such as phone calls data records for aiding its securities transactions investigations
Earlier, the Ordinance was re-promulgated on the advice of the Union Cabinet by the President on 18 July 2013 and again on 16 September 2013. The move was to arm the regulator with more stringent powers comes in the wake to curb the illegal involvement of chit fund companies.
However, Parliament could not pass the Securities Laws (Amendment) Bill 2013 in the Winter session. Hence the Ordinance got lapsed on 15 January 2014. Ordinances must be approved by Parliament within six weeks of reassembling of the Parliament else the ordinance will cease to operate.
About Ordinance
Article 123 of the Constitution grants the President certain law making powers to promulgate Ordinances when either of the two Houses of Parliament is not in session and hence it is not possible to enact laws in the Parliament.
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