Mumbai: A committee of the Securities and Exchange Board of India (SEBI) has suggested that in order to deal with discrimination and other methods of fraud, the market regulator should ask for the right to tap telephone and other means of communication.
SEBI now has the right to demand details of call records. If the recommendations of the committee are implemented then SEBI will also get the right to call the call. On the issue of fair market conduct, the committee headed by former Law Secretary TK Viswanathan submitted its report on Wednesday which was made public today. The committee says that SEBI should ask for the right to tap the call, but to prevent misuse, necessary amendments should be made in respect to the relevant laws.
Alliance Law managing director RS Luna said that institutions like police and CBI already have such rights. They said, 'White collar crime is also equivalent to serious crimes. It is very difficult to prove crimes like discrimination. I think SEBI should be given the right to record calls with certain conditions. A senior officer should be given the responsibility of call recording so that it can be ensured that it is not misused. However, Sandeep Parekh, founder of Finaceco Advisors and former executive director of SEBI, said, "You can not give such rights to financial regulators. There is no such place anywhere in the world. '
The committee has recommended this time when discussions in the country about privacy are hot. The Supreme Court had in August last year said in its judgment that privacy is fundamental right. The committee has also suggested to deal with benami accounts, insider trading and other methods of fraud. In order to deal better with the case of fraud, changes in existing rules have been recommended. The Committee says that the rules of fraud should not be confined to intermediate institutions (depository and broker etc.), but their employees should also be brought under its purview. The committee has suggested a special provision for dealing with manipulation of accounts.
Several suggestions have been given to curb discriminatory business. These include making two different code of conduct. One of these will be for list companies. The other intermediaries will set standards for people who handle sensitive information. The committee says that companies should keep the information of close relatives of people who handle sensitive information.