Special court to hear Sebi matters likely soon

NEW DELHI: To fast track prosecution and investigations initiated by Sebi against defaulters, a special court may be set up soon to hear such cases as the regulator has taken up this matter with the government and judiciary.

A provision for setting up a designated court to hear Sebi cases, as also to give go-ahead to the regulator for carrying out search and seizure operations, has been made in the new law aimed at giving the market watchdog more teeth.

"We have taken up with the government and the High Courts. My feeling is that they are working on it. We have already taken it up... Parliament has passed the law, government has notified the law, we have already written to the government. Wait for sometime," Sebi Chairman U K Sinha said here.

He was responding to a query on when the special court is expected to be set up.

The Securities Laws Amendment Act, notified by the government in August, amends all legislations governing capital markets and also facilitate setting up of a special Sebi court to fast-track the investigation and prosecution process, including by granting approval for search and seizure operations in suspected cases of frauds.

The Act is part of the government and regulators' efforts to tighten the noose around fraudsters in the wake of several cases of illicit money-pooling activities, including by ponzi operators, in various parts of the country.

When asked about the refund claims received by Sebi in relation to Sahara case, Sinha declined to comment.

Those having invested in various bonds issued by two Sahara firms, Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL), were asked by Sebi to submit their refund applications along with necessary documentary proof by September 30, 2014.

With regard to Sahara case, Sebi, in its latest annual report for the financial year ended March 31, 2014, said it has received about 3,612 applications involving 13,948 deposit accounts.

Out of the total, refunds were made in respect of 445 applications involving equal number of deposit accounts for an aggregate amount of Rs 1,25,21,241, including interest of Rs 43,83,241, the report had said.