29.7 C
New Delhi
Tuesday 22 October 2019
Economy SEBI: Drum-beating, calling out defaulter’s name, putting up notice...

SEBI: Drum-beating, calling out defaulter’s name, putting up notice of confiscation are outdated styles of recovery

SEBI has told the Union finance ministry to replace the anachronistic ways of recovery with new, ingenious and effective approaches

-

- Advertisment -

New Delhi: These styles may have worked for ages, but announcing auctions by beating drums is grossly anachronistic according to SEBI. The market regulator feels that these methods have become a thing of the past and in this day and age, new ways can get better results.

Among the tasks of the Securities Exchange Board of India, there is the job of recovering fees by selling the property of defaulting or non-paying units. When these rights were reviewed recently, these old methods used for an auction came to light.

Officials said that the SEBI is consulting the finance ministry for preparing new rules for the recovery of penalties, fees, principal amounts and refunds.

The SEBI can appoint any person for the defaulter’s repayment of instalments and for seizing of his bank accounts, arresting or detaining the defaulter and managing the defaulter’s movable and immovable properties.

According to the official, SEBI said in a presentation to the government that some provisions of the Income Tax Act have become obsolete, such as drum play and public auction. In newspapers, new ways like advertising and e-auction can give better results, the communiqué said.

The SEBI has asked the government to make necessary amendments in the rules to implement the quick and effective methods of recovery.

Before confiscating or seizing any property under the existing provisions of the IT Act, it is necessary to announce the order of attachment or duplication by a means called Pukar (Hindi for calling out loud).

In addition, the order for seizure has to be displayed on the premises of the said property on a clearly and publicly visible place on the board of the tax collection office.

In response to the suggestion made by the SEBI in this regard, the ministry said that the provisions of recovery under the IT Act can be modified under the SEBI Act and the Union government has the right to do so. Therefore, the amendment should be based on the rules made by the Centre.

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi
Avatar
Anil Kumar Sharma
The Executive Editor of Sirf News has a media experience of over two decades in business and political reporting, and input coordination and research on tax; he worked for the programme 'Made in India' on Doordarshan, with ANI in the making of 'Business This Week' on Home TV and South Asia News Capsule on American channel News 56; worked with Sahara Samay as a senior correspondent and Aksharganga Media and contributed to business magazine Logistic Times

Leave a Reply

Opinion

Aaditya Thackeray, Shiv Sena’s Existential Gambit

With leaders deserting Shiv Sena or debilitated with age, the party's footprint shrinking and Uddhav lacking Balasaheb's charisma, Aaditya had to step in to maintain the dynasty that has mostly been betrayed when politicians not from the Thackeray family were trusted

Karva Chauth: Faith, legend behind viewing the moon through a sieve

The legend and Karva Chauth rituals vary across Rajasthan, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Haryana, Punjab, Delhi and, in south India, Andhra Pradesh

Pakistan-Occupied Kashmir, Here We Come!

Study Wuhan and Mamallapuram in the backdrop of the fact that things are not quite working out in China-Pakistan economic relations, notwithstanding the urge of the communist state to contain India and that of the Islamic state to challenge it

Slowdown Has Reasons Other Than GST, Demonetisation

When all economic sectors decline, the mood of the market turns sombre, turning investors all the more reluctant to pump in money; the interdependence of industries means that the slowdown suffered by one would affect many

Where China & India, Resisting & Improving Democracy, Meet

What you see in Hong Kong is China resisting democracy; what you see in Kashmir is India promoting it; a reasonably capitalist China does not offer freedom politically but India, held back at times by the choice of the people, is still opening up; there could be a point of convergence as the two nations move in opposite directions
- Advertisement -

Elsewhere

Terrorist camps reactivated along LoC; Army on vigil

Camps were built in many new places too, but they did not last long as terrorist groups have repeatedly changed their locations

Kartarpur Corridor: Pakistan ready for talks on India’s terms

India and Pakistan had earlier reached an agreement on the Kartarpur Corridor except on the condition of service charges for the pilgrims

Killers of Kamlesh Tiwari spotted; Ashfaq, Moin elusive

While the plot was hatched in Gujarat, those arrested from Surat were conspirators; police are pursuing the killers spotted in Shahjahanpur

Aaditya Thackeray, Shiv Sena’s Existential Gambit

With leaders deserting Shiv Sena or debilitated with age, the party's footprint shrinking and Uddhav lacking Balasaheb's charisma, Aaditya had to step in to maintain the dynasty that has mostly been betrayed when politicians not from the Thackeray family were trusted

The curious case of Bangladeshi beard turning saffron

While the beard underscores a Bangladeshi's Muslim identity where fashion is otherwise taboo, they are encouraged by the fact that Prophet Mohammed had set a precedent

You might also likeRELATED
Recommended to you

%d bloggers like this: