NEW DELHI, Apr 2: In a major boost to its powers, regulator Sebi may soon get access to internet and call data records of fraudsters and market manipulators in a foreign country and also seek freezing of their overseas assets.
Sebi already has powers to seek call data records, excluding the exact content of the communication, from telecom firms within India and these details have often helped the regulator act against defaulters in cases like market manipulation, fraudulent trades and insider trading.
The new powers to seek such details from abroad will help the regulator in cases involving entities and persons in foreign countries, as Sebi would be able to establish regular connections between them even without access to exact content, a senior official said.
Globally, regulators rely a lot on access to such technology-linked records and use the subscriber records and traffic data to prove passage of information.
The additional enforcement powers will be available to Sebi through the Enhanced Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (EMMoU), which has been approved by the IOSCO, the apex international body of market regulators.
The Securities and Exchange Board of India (Sebi) is a key member of IOSCO (International Organisation of Securities Commissions), which is recognised as the global standard setter for regulations in the securities markets worldwide.
To get the additional powers, Sebi and other regulators would need to migrate to the new EMMoU from the existing MMoU.
The new mechanism will also enable regulators to obtain and share audit work papers, communications and other information relating to audit or financial account reviews.
Besides, they would be able to compel physical attendance for testimony (by being able to apply a sanction in the event of non-compliance), and also freeze assets if possible or, if not, advise and provide information on how to freeze assets at the request of another regulator.
The sharing of internet and telephone records, excluding the exact content of communications, would also be possible with the assistance of a prosecutor, court or other authority. Regarding the content of the communications, the regulators would have to contact the authorised entities. (AGENCIES)
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