Presenting the Union Budget 2018-19, Finance Minister Arun Jaitley said that some assets of public sector units will be monetised through the infrastructure investment trust (InvIT) route. He also proposed a unified regulator for financial services in International Financial Service Centre (IFSC) at Gift City.
“IFSC at Gift City, which has become operational, needs a coherent and integrated regulatory framework to fully develop and to compete with other offshore financial centres. The government will establish a unified authority for regulating all financial services in IFSCs in India,” said Jaitley.
Apart from this the Finance Bill, 2018 has listed a number of amendments in SEBI norms to give it more freedom to levy monetary penalties for violations by alternative investment funds (AIFs), InvITs, real estate investment trusts (REITS), investment advisers and research analysts among others.
SEBI can now levy a penalty on AIFs, InvITs and Reits for non compliance of minimum Rs 1 lakh or maximum of Rs 1 one crore or three times the amount of gains made out of such failure, whichever is higher. Investment advisers and research analysts can also face monetary penalty up to Rs 1 crore for non-compliance with SEBI regulations.
The amendments have also empowered SEBI to penalise stock exchanges and clearing corporations if they fail “to conduct its business with its members or any issuer or its agent or any person associated with the securities markets in a manner not in accordance with the rules” prescribed by the market watchdog.
The penalty in such cases, according to the new amendment cannot be less than Rs 5 crore and may extend to Rs 25 crore or three times the amount of gains made out of such failure, whichever is higher.