MoF, law ministry yet to sort out power sharing

NEW DELHI: A recent meeting between finance minister Yashwant Sinha and minister for law, justice and company affairs Arun Jaitley has given rise to a piquant situation. Following the meeting, the finance ministry is under the impression that some overlapping issues raised by DCA are yet to be discussed. DCA, on the contrary, is under impression that all issues have been resolved and next meeting has been set merely to fine-tune decisions already taken. Misunderstanding on what is yet to be done, seems to have arisen from a 10-page note shot off by a former DCA joint secretary some time ago. He has since left, and DCA too seems to have changed its own position, but unaware of change, the finance ministry seems to have been labouring away to battle on issues raised in this note. The points highlighted include withdrawal of powers to regulate issue of securities and payment of dividends by listed companies vested with Sebi. The DCA, however, does not want these issues resolved. Speaking to ET , top DCA officials said that they had a single concern â€” the need to be circumspect in respect of empowering Sebi to attach bank accounts, search and seize books of accounts of companies under proposed Sebi Amendment Act. These concerns have been addressed at meeting last week and they now want no more. Despite repetitive attempts, capital markets joint secretary U K Sinha, however, refused to take calls from ET . The DCA sources point out that after latest amendments, provisions of Companies Act already empower Sebi to search and seize books of accounts of listed companies with the courtâ€™s approval. Inspections under Section 209 A are already permitted for Sebi. The markets regulator, however, requires additional powers for dealing with insider trading and market manipulation by companies, top DCA officials said. DCA and finance ministry are thus trying to resolve deficiency by vesting limited powers with markets watchdog under Sebi Amendment Act, they added. The use of these powers (search, seize and attach bank accounts), however, would be subject to the Sebi chairman and courtâ€™s approval.

MoF, law ministry yet to sort out power sharing

A recent meeting between finance minister Yashwant Sinha and minister for law, justice and company affairs Arun Jaitley has given rise to a piquant situation.

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