After beating drums and shouting aloud may have a lot of dramatic value to attract potential bidders, but capital markets regulator Sebi feels these archaic methods for recovery of funds through the sale of attached assets are outdated and there are several newer alternatives that can yield better results. Meanwhile the 'outdated' provisions have caught the eyes of the Securities and Exchange Board of India (Sebi) during a review of recovery powers available to the regulator, which it exercises when someone fails to pay penalties or fees or defaults on regulatory orders.
Furthermore in consultation with the Ministry of Finance, the securities market regulator is considering drafting separate recovery rules to recover penalties, fees, disgorgement amount and refund orders made under the Sebi Act. The officials said “Sebi is empowered to order attachment and sale of defaulters' properties as well as bank accounts, as also to order arrest and detention of a defaulter and to appoint a receiver for management of the defaulter's movable and immovable properties”.
Moreover Sebi has told the government that it may be difficult to keep a tab on the amendments made to the income tax laws and there might be ambiguity as to how the modifications would be made, whether, by the Act, rules or regulations.
