New Delhi: Market regulator Securities and Exchange Board of India (Sebi) is proposing several changes to securities laws to tighten disparate provisions and empower itself to tackle cases of market fraud and wrongful disclosure.
The regulator is also proposing a fee cut for market intermediaries, even as it prepares to rationalize disclosure norms for rights issues.
Market reforms: The Sebi headquarters in Mumbai. The changes proposed by the regulator have been sent to the Sebi board. Abhijit Bhatlekar / Mint
In addition, it wants to make it mandatory for unlisted companies going public to list on at least one stock exchange that has trading terminals spread across the country.
Sebi has proposed changes to the Sebi Act, 1992, Securities Contracts (Regulation) Act, 1956, and the Depositories Act, 1996, people familiar with the development said on condition of anonymity.
Sebi officials recently met finance ministry officials in this regard. The proposed changes are now being put up to the Sebi board for its consent.
The board is scheduled to meet on 18 June. Once it approves of the changes, the finance ministry hopes to move amendments to the three laws in the ensuing session of Parliament.
A key proposal is to change the definition of insider trading, with the suggestion being to include communication of price-sensitive information.
Another proposal is aimed at empowering Sebi to seize assets and properties of issuers who have made wrong disclosures.