DCA against Sebi getting search, seizure stick

new delhi: the sebi amendment act is all set to be diluted. the department of company affairs has written to the finance ministry opposing the grant of search and seizure powers that the act has proposed for the market watchdog. it has said since the department is already empowered to conduct inspections of books of accounts of companies, the additional powers to sebi would lead to an overlap. dca has also said that the proposed penalty of rs 25 crore for certain offences is unreasonable. top government officials told et that the department has written to the finance ministry that sebi should only be given powers to search and seize the books of sharebroker firms and stock markets operators. “sebi asking for powers to search and seize the books of accounts of companies registered under the companies act is unreasonable and would lead to a overlap of powers. companies fall under the dca’s jurisdiction,� a top-level official said. the finance ministry has accordingly called a meeting to discuss the overlap of powers between the different regulators. officials confirmed that the proposed search and seizure powers and the level of penalties to be imposed would be discussed. though officials declined to disclose the other items on the agenda, the meeting to be held at the north block is likely to be attended by representatives from both sebi and dca.