Attach assets in case of non-compliance and the Chairman of SEBI would have powers to authorize the carrying out of search and seizure operations, as part of efforts to crack down on ponzi schemes.
Besides, SEBI would have powers to seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being investigated by it.
Establishment of Special Courts enabled by this Ordinance would fast-track the resolution of pending SEBI related cases.
This was done after the approval of the cabinet for providing more powers to the regulator for enforcement against illegal collective investment schemes and to curb insider trading.
There has been regulatory gap regarding new methods of raising funds which pave the way for scams like Shardha chit fund.