SEBI empowered to frame rules and update them as required: Govt tells Parliament

Mar 15, 2023

SEBI is empowered to frame appropriate regulations and update them, as and when required, in response to the dynamic nature of the markets and the new types of behavior that the market exhibits

Stressing on the role of the Securities and Exchange Board of India (SEBI) in protecting the interests of investors, the government on Tuesday informed Parliament that the board conducted investigations into alleged violations of its regulations by any market entity according to the SEBI (Prohibition of Insider Trading) Regulations, 2015 and SEBI (Prohibition of fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.

Union minister of state (MoS) for finance Pankaj Chaudhary was replying to Communist Party of India (Marxist) leader John Brittas.

In his written reply, MoS Chaudhary said, “SEBI is empowered to frame appropriate regulations and update them, as and when required, in response to the dynamic nature of the markets and the new types of behavior that the market exhibits.”

While replying to another query by Brittas on if the government strategy to tighten the rules and regulations for regulating the share market, MoS Chaudhary added, “Further, the Hon’ble Supreme Court vide its order dated 02.03.2023 has constituted an expert committee for the assessment of the extant regulatory framework and for making recommendations to strengthen it.”

SEBI was constituted as a non-statutory body on April 12, 1988 through a resolution of the government of India.

It was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.

[The Hindustan Times]