SEBI board to discuss proposed empowerment Bill

KR Srivats New Delhi | Updated on June 10, 2014 Published on June 10, 2014

To meet in the Capital on June 19

The board of the Securities and Exchange Board of India will meet in New Delhi on June 19 to discuss, among other things, the contours of a Bill to replace an existing ordinance.

This meeting assumes significance as it will be the first since the new government assumed charge at the Centre. The SEBI board meeting will discuss the contours of the crucial Bill that new government will have to introduce in Parliament next month when a full-fledged general budget is expected, official sources said.

This Bill will replace the existing Securities Laws (Amendment) Ordinance, 2014. This ordinance, which was promulgated by the President on March 28 this year, sought to strengthen the enforcement powers of SEBI. It also conferred powers on the capital market regulator to undertake search and seizure and to crack down on Ponzi schemes.

An ordinance conferring powers on SEBI to undertake search and seizure had so far been issued three times.

Annual report, REITs

Santosh Kumar Gangwar, Minister of State for Parliamentary Affairs, had on Monday tabled the Securities Laws (Amendment) Ordinance (March 2014) in the Lok Sabha.

The SEBI board is also likely to adopt the annual report of the capital market regulator for the year 2013-14. Indications are that the board may also take up for discussion a proposal to allow real estate investment trusts (REITs) in India. A final nod in this matter of allowing REITs hinges on the tax breaks that would be offered for such vehicles.

“As a new investment product, REITs would take off in India only when tax breaks are offered to incentivise the setting up of such vehicles,” said Ajit Krishnan, Partner and Real Estate Leader, EY, a professional services firm. “There is merit in providing incentives as it will only be value-additive to the economy,” Krishnan told Business Line here.

REITs will be of benefit, especially to the hospitality and healthcare services industries, said Padmanabh Sinha, Managing Partner, Tata Opportunities Fund, Tata Capital.

Published on June 10, 2014
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