August 6, 2014
SEBI Act must have provisions to return money to duped investors: Kalyan Banerjee in LS
Trinamool MP Kalyan Banerjee today spoke inthe Lok Sabha on the Securities Laws (Amendment) Bill, 2014. During his speechhe said there are enough laws in India and what is needed is strictimplementation and execution.
Mr Banerjee said that the SEBI Act of 1992was old and inadequate to fight with chit funds. He said that sufficientprovisions were not there in the Act to take action against malpractices and toreturn money to poor investors.
Chit funds have mushroomed in India. In ourState, they thrived since 1984, he said. He requested the Govt to consider makinga provision for returning money to poor investors under the new law. He citedthe example of a committee formed by Calcutta HC to return money to the dupedinvestors of Sanchayita scam.
He also demanded that a standard needs tobe set for the Chairman of the SEBI. It should act for public interest &should not have political agenda. “Handing over cases to CBI is a fashiontoday. But in most cases it has not completed trial even today,” he added. Hesuggested that an advocate with 6 years experience and with exp in criminaltrial should be made a prosecutor.
Mr Banerjee added that West Bengal Govt hadenacted an Act akin to this Amendment. But due to error in communication, thatAct did not get President's assent. He urged the Centre not to repeat themistake of UPA Govt.