The Finance Ministry has proposed to decriminalise minor offences, including those relating to the Securities and Exchange Board of India Act, to help businesses tide over the crisis caused by the coronavirus outbreak.
Some of the minor offences pertaining to investigation by market regulator SEBI have been proposed to be decriminalise, the Department of Economic Affairs under the Finance Ministry said while inviting comments of stakeholders by June 27 on three legislations.
These legislations are Securities and Exchange Board of India Act, 1992, the Securities Contract Regulation, Act, 1956, and the Depositories Act, 1996.
"Actions taken for decriminalisation of minor offences are expected to go a long way in improving ease of doing business and helping unclog the court system and prisons," it said.
"It would also be a significant step in the Government of India's objective of achieving 'Sabka Saath, Sabka Vikas and Sabka Vishwas'," it noted.
Based on the feedback, the Department of Economic Affairs will take a call as to a particular section should remain a criminal offence or that should be suitably modified to decriminalise to improve ease of doing business.
Last month, Finance Minister Nirmala Sitharaman while announcing the fifth and final tranche of the Rs 20.97-lakh crore stimulus package for the economy hit by the coronavirus pandemic had said that violations involving minor technical and procedural defaults would be decriminalised as effort to further ease of doing business in the country.
Taking a cue from the decriminalisation of minor offences under Companies Act, the Department of Economic Affairs came out with a list of minor offences under various legislation and said decriminalisation of minor offences is one of the thrust areas of the government.
With regard to Section 11C Securities and Exchange Board of India Act, relating to Investigation, it seeks to decriminalise an act of failure to appear before the Investigating Authority personally.
"If any person fails to pay the penalty imposed by the adjudicating officer or the Board or fails to comply with any directions or orders, he shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to ten years, or with fine, which may extend to twenty-five crore rupees or with both," it said.
In order to develop consensus, the Department of Economic Affairs, which administers the Acts, invites the comments of state governments, UT administrations, civil society, academicians, public and private sector organisations and members of the public, it added.
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