New Delhi: The Finance Ministry has said there is no move to drop the proposal to arm Securities and Exchange Board of India (SEBI) with powers to carry out search and seizures of erring companies in a bid to prevent scams.

"The search and seizure powers have not been dropped totally from the proposed bill to amend SEBI Act. The bill is likely to be introduced in the monsoon session of Parliament," Finance Minister Yashwant Sinha told reporters in New Delhi.

Sinha's assertion assumes significance in the wake of reports that Law Ministry was not in favour of SEBI being provided with powers to carry out search and seizures as given to Enforcement Directorate (ED) and Central Bureau for Investigation (CBI).

The Law Ministry is of the view that such sweeping powers would go against the interest of corporates. Besides Department of Company Affairs is empowered to inspect books of accounts and initiate proceedings against erring corporates under the Companies Act.

However, Finance Ministry felt SEBI, which is a quasi-judicial body, should be provided with these powers to give more teeth to the market regulator. At present SEBI's hands are tied while dealing with scams in capital markets because of the lack of this provision. SEBI also wanted it to be empowered to impose penalties.

PTI