Finance Minister P Chidambaram has said the government may promulgate the ordinance giving greater powers to market regulator Securities and Exchange Board of India (Sebi) for the third time if the Standing Committee scrutinising the Bill to replace it does not submit its report in the current Session of Parliament.
The ordinance provides powers for Sebi Chairman to authorise Investigating Authority or any other officer of the regulator to conduct search and seizure under the Sebi Act.
Speaking at a National Stock Exchange (NSE) event, the minister said the "legislation and law making in India is a complex process" and the government may promulgate Sebi ordinance for the third time if the House panel does not submit its report by end of the winter session on December 20.
He said the committee has not yet submitted the report, which it was to submit on December 5 - the first day of the session.
If the report does not come by the last day of the session, the government will have to, in an unprecedented move, promulgate the ordinance for third time, he said.
Mr Chidambaram also said the ordinance has already been promulgated twice so that the powers given to Sebi remain in place for effective supervision of markets and regulatory actions.
The orginance also empowers Sebi to make regulations in relation to search and seizure.
Talking about the recommendations of the Financial Sector Legislative Reforms Council (FSLRC), Chidambaram said government attaches great value to the recommendations.
"However, I acknowledge that passing legislation in terms of the recommendation of the FSLRC wil take time. Legislation and law making in India is a complex process," he said.
"Therefore, we have decided that while we will actively pursue making the law, we will make a beginning with implementing the non-legislative recommendations."
The recommendations are, among other things, aimed at making Indian financial sector sound, well regulated, efficient and internationally competitive.