Provisions for SEBI under Finance Bill, 2019

The Finance Bill, 2019 has given more powers to Securities and Exchange Board of India. The key highlight has been the addition of section 15HAA with regards to punitive action for data tampering.

• SEBI can act against tampering of electronic databases. This is against the backdrop of issues like colocations, HFT/ high frequency trades etc.
• Punishment for data tampering, destruction and unauthorised access is a fine of up to Rs. 10 crore or thrice the illegally gained amount, whichever is more.
• SEBI can penalize entities for failure to provide information it seeks, such as returns. This move will address the technical issue in Securities Contracts (Regulation) Act, 1956.
• It can impose a penalty of Rs. 1 crore on brokers for violation. This is simply an addition of an upper limit of penalty to an earlier provision.
• Setting up of a reserve fund for SEBI.