SEBI seeks special courts for stock market frauds

The Securities & Exchange Board of India (SEBI), concerned over delays in the prosecution of those found to be involved in frauds and other offences, has asked the government to set up special courts to fast-track the process of bringing the guilty to book, its chief said today.

Expressing concern over some cases continuing for years, SEBI chairman U K Sinha told PTI in an interview that there was a need for special courts to expedite the process and the regulator has asked the government to facilitate this.

Asked about the cases like the one against Rajat Gupta in the US where the Indian-origin banker is facing a long jail term for alleged insider trading, Sinha said that legal provisions in India and the US are entirely different.

"In the US system, the investigators have got more powers and secondly it can lead to prosecution and actual criminal punishment. In our system, the emphasis is more on penalty and now the penalty is much higher in cases like insider trading than what it used to be earlier.''

Sinha said there is a provision for prosecution as well in India, in addition to penalties. "But our prosecution is not succeeding to that level. I admit that. In some cases, where we have tried prosecution, we have found that the prosecution has been going on for years and years together.

"Primarily, that is because we do not have earmarked judges. If we want our prosecutions to succeed, we need earmarked judges. We need special courts. If that happens, there will be a marked improvement on this front," he said, adding that SEBI had petitioned the government for such courts.