Which of the following is not the power of Securities and Exchange Board of India(SEBI) as per the Finance Bill 2019 presented during the Union Budget 2019 ?
Answer with explanationAnswer: Option A
The Finance Bill 2019, one of the documents of the Union Budget 2019-20, gave certain powers to the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). Checks and Balances on SEBI’s Expenses: Finance Bill amends section 14 of the SEBI Act and constitutes a Reserve Fund. SEBI General Fund can be utilized for capital expenditure as per annual capital expenditure plan approved by the SEBI board and the Central Government. 25% of the annual surplus of the General Fund is required to be credited to this Reserve Fund and SEBI has to transfer the rest 75% of its annual surplus from the General Fund every year to Consolidated Fund of India (CFI). Clarification on Electronic Communication & penalty on broker: SEBI under section 15C of SEBI Act, can ask a listed company or any person who is registered as an intermediary, to redress the grievances of investors. It can now impose penalties of up to Rs 1 crore on brokers for certain violations. Alteration, Destruction etc. of records and failure to protect electronic database: Section 15HAA has been inserted whereby any alteration, destruction, etc. of records done knowingly so as to impede, obstruct, or influence the investigation, inquiry, audit, inspection or proper administration of any matter under SEBI will be penalised with minimum Rs 1 lakh extendable upto Rs 10 crore or 3 times the profits made out of such act, whichever is higher.