SEBI chairman UK Sinha was answering media queries on what action will be taken against Reliance and Sahara Groups for their alleged market misconduct
Mumbai: Market regulator SEBI said it has framed a new set of guidelines for consent order mechanism and warned that any corporate house, however big it may be, caught for serious misconducts will be severely dealt with as the market is not a "casino".
"We have come out with a new set of guidelines for the consent mechanism and if any corporates or individuals, however powerful they may be, are found going against that policy, stern action will be taken against them," Securities and Exchange Board of India (SEBI) Chairman U K Sinha told reporters.
He was answering media queries on what action will be taken against Reliance and Sahara Groups for their alleged market misconduct.
However, Sinha did not name any of these companies, nor did he reveal the changes in the new consent mechanism, but said if any corporate or individual flouts the regulatory norms stern action will be taken against them as per the law.
Consent mechanism refers to settlement of a case dealing with alleged flouting of securities laws without the individual or company involved admitting or denying guilt. The alleged party gets absolved of the charges by paying a mutually agreed penalty to the SEBI.
"We are taking all possible measures to ensure that nobody is able to avoid the rules of the game, especially on a continuous basis, to harm the interests of the individual and institutional investors," he warned.
"The SEBI is continuously taking measures to improve retail investors' confidence in the equity markets ... the market is not a casino where one can do anything and get away with it," Sinha said.
The banking bill will pave the way for corporate houses to enter the banking sector which is a key reform legislation pending for long
New Delhi: The three financial sectors reforms laws, Prevention of Money Laundering (Amendment) Bill and Banking Laws (Amendment) Bill, 2012 have become law of the land with President Pranab Mukherjee giving assent to them, reports PTI.
The Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2012 also got the President's assent, an official statement said.
The Prevention of Money Laundering (Amendment) Bill, which seeks to enlarge the definition of money laundering offences and could help curb funding of terrorist operations, was approved by Parliament in the Winter Session.
The Bill had sought to remove existing limit of Rs5 lakh as fine under the Act. It proposes to make provision for attachment and confiscation of the proceeds of crime even if there is no conviction so long as it is proved that offence of money laundering has taken place, and property in question is involved in money-laundering.
The banking bill will pave the way for corporate houses to enter the banking sector which is a key reform legislation pending for long.
The Banking Bill was approved by Parliament after the government dropped the controversial clause concerning allowing banks to trade in commodity futures.
The Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2012 aimed at strengthening the provision for bad debts by banks and financial institutions.