Sebi amends rules; to send notices, summons via instant messaging services
Sebi will now be sending show cause notices and summons to alleged offenders of securities market rules through instant messaging services, a move that will make the process faster.
At present, the regulator sends such documents through either registered post, courier or electronic mail.
Also, Sebi has tweaked norms pertaining to powers of investigating authority for seeking information and documents in respect of any transaction in securities markets, which are under investigation.
Summons or notices issued by Sebi under PFUTP norms will be served on the person by delivering or tendering it to that person or his duly authorised agent.
It can also be sent by fax or electronic mail or electronic instant messaging services along with electronic mail or by courier or speed post or registered post.
The Securities and Exchange Board of India (Sebi) has also specified certain conditions in this regard.
In case of failure to serve a summon or notice through any one of the modes, the summon or notice may be affixed on the outer door.
It can also be on some other conspicuous part of the premises in which ''the person resides or is known to have last resided, or carried on business or personally works, or last worked, for gain and a written report thereof shall be prepared in the presence of two witnesses''.
In case of failure to affix the summon or notice, it has to be published in at least two newspapers, one in an English daily newspaper having nationwide circulation and another in a newspaper having wide circulation published in the language of the region where that person was last known to have resided or carried on business or personally worked for gain, as per the notification.
With regard to powers of the investigating authority (IA), the regulator said IA does not require proper approval of Sebi chairman or member for exercising certain powers.
These powers are related to call for information and record from any person including any bank or any other authority constituted under Central and State Act in respect of any transaction in securities which are under investigation.
Among others, the IA can make an application to the judge of the designated court in Mumbai for an order for the seizure of any books and document if the authority believes that such documents relating to any person associated with securities market in any manner could be destroyed or altered.
IA can keep in his custody the books, registers, other documents and record seized under the norms for such period not later than the conclusion of the investigation as he considers necessary and thereafter to return the same to the person, Sebi said.
''The Investigating Authority may, before returning such books, registers, other documents and record as aforesaid, place identification marks on them or any part thereof,'' it added.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)