Mumbai: The capital market regulator on Tuesday clarified that news reports, suggesting that the Securities and Exchange Board of India (Sebi) has issued new guidelines to mutual funds to keep tab on bureaucrats and politicians is factually incorrect.
On Tuesday, Press Trust of India reported that Sebi is to keep tab on bureaucrats, politicians on mutual fund investments.
Sebi said that under the Prevention of Money Laundering Act (PMLA) and rules there under, and in adherence with global standards of the Financial Action Task Force (FATF), certain category of individuals are indicated as ‘clients of special category’.
This includes politically exposed persons which are defined as individuals who are or have been entrusted with prominent public functions in a foreign country, such as heads of states or of governments, senior politicians, senior government / judicial / military officers, senior executives of state-owned corporations, and important political party officials.
These guidelines already form part of the know your customer or KYC process and are applicable to all securities market intermediaries. Similar guidelines exists for clients in other financial sectors - namely, banking and insurance.
Sebi allows PW to cross examine key officials in Satyam case
Sebi allowed Price Waterhouse to cross examine certain 8 key officials involved in the Satyam scam. “Cross-examination on behalf of PW 1 is permitted of Shri G.
Ramakrishna, Shri Venkatapathi Raju Dhanthuluri, Shri P. S. Sudhakar, Smt. Madduri N. V. Gayatri, Shri Samvit Durga, Shri Girish B. K. Tallam, Shri V. V. K,. Raju and Shri Srinivas K. Anapu,” Sebi whole time member MS Sahoo said in an order on Wednesday.
Sahoo observed that there has been an attempt to delay the proceedings and this cannot be allowed to continue indefinitely. “Noticees cannot be permitted to unnecessarily delay the proceedings to render them ineffective in the guise of observance of principles of natural justice. ..In the present case, it is already eight months since the hearing commenced, and hardly any progress has been made in the matter,” he said in the order.