Enhancing SEBI’s Powers
Distilled Policy Brief
- The Bill expands the definition of Collective Investment Schemes (CIS) by adding a proviso that deems any scheme with pooled funds, unregistered or unexempted, and a corpus of Rs 100 cr or more as a CIS, thereby potentially bringing partnership firms and real‑estate developers under SEBI’s purview.
- It grants SEBI the authority to order disgorgement of unfair gains or losses without court approval, attach bank accounts and property, and conduct search and seizure operations, while also setting up special courts for SEBI offences and validating consent orders and MoU‑based information exchange.
🎯 Prelims High-Yield Examination Points
Key amendments to SEBI Act and powers of SEBI under the 2013 Bill.
⚖️ Mains Analytical & Syllabus Linkages
Implications of expanding CIS definition and SEBI’s enhanced enforcement powers on market regulation and investor protection.
🎯 UPSC Prelims Practice Drill
Under the Securities Laws (Amendment) Bill, 2013, a scheme will be deemed a Collective Investment Scheme (CIS) if it satisfies all of the following conditions EXCEPT:
- [A] The scheme pools funds of investors.
- [B] The scheme is registered with SEBI.
- [C] The scheme has a corpus of Rs 100 crore or more.
- [D] The scheme is not exempted under the SEBI Act, 1992.
▶ Reveal Official Answer & Analytical Explanation
The Bill’s proviso deems a scheme a CIS when (a) funds are pooled, (b) it is not registered with SEBI or not exempted, and (c) its corpus is Rs 100 crore or more. Hence, being registered with SEBI excludes a scheme from the definition. All other options are part of the criteria.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.