Sebi strengthens enforcement department to clear case backlog
MUMBAI: The Securities and Exchange Board of India (Sebi) is strengthening its enforcement department as pending cases attracts attention of external agencies and courts, said two people aware of the matter.
New Sebi chairman Ajay Tyagi has tasked five senior officials with resolving some of the high-profile cases out of the 7,000 cases pending before it, the people said, on condition of anonymity.
“To clear the backlog of cases that are pending enforcement for more than two years such as long term capital gain manipulation cases, the Pyramid Saimira case of market manipulation, and the global depository receipts (GDR) case, Sebi is strengthening its enforcement department,” one of the two people said. The move is in line with a guidance note from Sebi’s vigilance department in February that called for quicker investigation.
“Five senior ranking Sebi officers have been given additional charge of the enforcement department to help in adjudicating processes. Sebi is also hiring junior Sebi officials to beef up the enforcement department,” said the second person. An email sent to Sebi was not answered.
Currently, there are only around 35 adjudicating officers and three whole-time members who can pass orders under Section 11. The section gives powers to the regulator to initiate investigations and pass orders against market entities for violation.
“Sebi is first looking at resolving the cases in which security agencies such as the CBI, I-T department, Securities Appellate Tribunal and the Supreme Court, have issued observations,” the first person said.