SEBI Passed 670 'Cease and Desist' Orders in FY15, 3-fold Rise

Capital markets regulator Sebi passed 670 \'cease and desist\' orders against entities for violating the norms during 2014-15 compared with 207 in the previous financial year.

Published: 01st September 2015 06:54 PM  |   Last Updated: 01st September 2015 06:54 PM   |  A+A-


The main focus of the exhibition will be to caution the public at large against illegal money mobilisation schemes through a variety of activity | File Reuters


MUMBAI: Capital markets regulator Sebi passed 670 'cease and desist' orders against entities for violating the norms during 2014-15 compared with 207 in the previous financial year.

The watchdog also took action in 225 cases related to unauthorised collection of investors' money in the last two years, Sebi chairman U K Sinha said while speaking at the launch of 'Nivesh India', a joint initiative of Times Network and NSE to reach out to investors in non-metro cities.

Securities and Exchange Board of India (Sebi) has cease and desist mechanism' wherein it can pass directions prohibiting entities from operating in the market.

"In the year 2014-15 we have passed 670 such orders while in the previous fiscal the orders were 207," Sinha said adding Sebi was now carrying out such enforcement "more seriously".

He also noted that while enforcement was necessary to penalise those misusing the system, "the whole attempt of Sebi and market players should be to educate people on how to avoid being lured into something which will not be in their best interest and which would be in the long run, disruptive."

Concerned over gullible investors being duped by unauthorised entities, Sinha said market players and media should not only educate the investors, but also caution them against such illicit activities.

Various entities have been found to be running collective investment schemes without obtaining registration from Sebi and have raked in funds promising high returns to investors.

Besides, several other firms and individuals have raised public money by issuance of securities such as debentures and redeemable preference shares without complying with the laws.

Sinha said that Sebi in the last three years launched 25,000 investor awareness programmes from its own funds. It also put out large number of television commercials, radio spots and mobile messages to caution investors.

The regulator is aiming to have one 'resource person' in each district of the country to educate investors on capital markets the by end of the current fiscal.

So far Sebi has empanelled 400 resource persons to educate people at schools, colleges and in small towns.

Noting that the small percentage of retail participation was a concern, Sinha said investment by EPFO this year in the capital markets was a big milestone.

"For me it is a big acknowledgement of trust in regulatory system that now workers' money is coming into the capital markets, and I am sure other pension funds would also start looking at the opportunity that the Indian market can provide in the long run," Sinha said.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp