CABINET
CLEARS AMENDMENTS TO.SECURITIES ACT
The union cabinet
has approved amendments to Securities Contracts (Regulation)
Act, 1956 to enable de mutualisation and corporatisation of
stock exchanges. It has also approved amendments to the Depositories
Act, 1996.
A proposal to amend
the Banking Regulation, 1949 to extend insurance cover for
depositors in the urban cooperative banks registered under
the Multi-state Cooperative Societies Act was cleared too.
The amendment will
enable the Reserve Bank of India of India to issue licenses
to these societies to carry on their business as bankers.
The bills are expected
to be introduced in Parliament when it reconvenes for the
winter session late November.
According to government
sources, amendments to the SCRA seeks to limit the number
of brokers on governing council of corporatised stock exchanges
to 25%. The corporatised exchanges would be allowed to operate
for profit.
The amendments
include steep increase in penalties on offences to maximum
of Rs 25 crore and the imprisonment for certain offences to
10 years.
The definition
of securities is sought to expanded to include the unit of
mutual funds. Sources close to the development said the amendments
to the Act would also confer powers on the central government
to grant immuity in certain cases. It is also proposed to
amend the provisons of the SCRA to allow appeals to orders
to Securities Appellate Tribunal to lie with the Supreme Court.
The cabinet today
gave its approval for acceptance of inter-governmental agreement
on Asian highways, and for becoming a party to the inter-governmental
agreement on the Asian Highway network.
The highway will
help the movement of traffic, improvement of trade and tourism
among Asian countries. At present, the Asian highways network
extends to 32 countries and its total length is more than
140,000 kms.
