SEBI (Securities and Exchange Board of India) does indeed have certain powers akin to those of a civil court under the Securities and Exchange Board of India Act, 1992. This includes the authority to summon individuals, enforce attendance, and demand production of documents, among other powers. However, the practical process for conducting searches and seizures involves a few additional considerations: 1. SEBI's Powers vs. Criminal Procedure Civil Powers: SEBI's powers are primarily civil in nature. These powers are used to ensure compliance with securities regulations and to handle matters related to market integrity and investor protection. Criminal Procedure: Seizures and searches, especially if they involve allegations of criminal conduct, often require a higher level of authority due to the implications for individuals' privacy and property. The process involves criminal procedures governed by the Criminal Procedure Code (CrPC). 2. Role of the Magistrate Legal Safeguards: The requirement for a magistrate's approval for seizure of documents provides a legal safeguard and ensures that the process adheres to constitutional and legal standards. It acts as a check to prevent misuse of power. Judicial Oversight: A magistrate’s involvement adds an additional layer of oversight to ensure that searches and seizures are conducted lawfully and that there is a legitimate basis for the action. 3. SEBI's Investigating Authority Coordination with Law Enforcement: SEBI's investigating authority, such as its officers or the Directorate of Enforcement, might need to coordinate with law enforcement or other judicial authorities to execute certain actions, like seizures, which can involve aspects of criminal law. Procedure Compliance: Even though SEBI can direct the production of documents or summon individuals, executing physical searches and seizures typically involves compliance with procedural laws that necessitate judicial oversight. 4. Legal Framework SEBI Act: Under the SEBI Act, SEBI has powers similar to those of a civil court but these are usually used for adjudicating and enforcing market regulations rather than conducting searches and seizures. CrPC: For actual searches and seizures, the Criminal Procedure Code applies, which requires magistrate approval to ensure the process is handled fairly and with proper authority. While SEBI has significant powers related to market regulation and compliance, the requirement for a magistrate's approval for searches and seizures is rooted in the need for adherence to criminal procedure laws. This ensures that such actions are carried out with appropriate legal oversight and safeguards. SEBI’s role is often more regulatory and investigative, while criminal procedures involve judicial oversight to protect individual rights and ensure lawful conduct.

Answer given by Shubhamm Sir at 04-Sep-2024 09:58 PM