New Delhi: The government has proposed to empower the Securities and Exchange Board of India (Sebi) to call for information and records of any transaction in securities which are under investigation, from any bank or authority, or board or corporation, constituted by the Centre or the state.

Currently Sebi can call for information only from intermediaries.

According to the Securities and Exchange Board of India (Amendment) Bill, 2002, the capital markets regulator will also be granted powers to search and seize books, registers and documents of intermediaries or any persons associated with the securities market. It can also issue orders of "cease and desist" to any person who is suspected of being likely to violate the provisions of the Act.

At present, under the provisions of the Companies Act, Sebi can conduct inspection of listed companies only for violations of certain provisions of the Companies Act. It cannot conduct inspection of any listed public company for violation of the Sebi Act.

The Sebi (Amendment) Bill, 2002, was introduced in the Lok Sabha yesterday. Sebi will now be empowered to prohibit manipulative and deceptive devices such as insider trading, fraudulent and manipulative trade practices, market manipulation and substantial acquisition of securities and control.