Section 15HAA inserted in SEBI Act to act against entities that tamper or destroy electronic databases

As per the Finance Bill 2019, a new section — 15HAA — has been inserted in the SEBI Act to act against entities that tamper or destroy electronic databases or fail to furnish information when sought by the capital markets regulator. Now, the Securities and Exchange Board of India (SEBI) can impose penalties of up to Rs 1 crore on brokers for certain violations. These new powers assume significance as the regulator is in the midst of probing the leak of sensitive data through WhatsApp and also recently passed fresh orders on the National Stock Exchange (NSE) co-location matter, which had been challenged at the Securities Appellate Tribunal (SAT).