Centre declines SEBI's request to tap phones in insider trading cases: Report

The government has declined to give the Securities and Exchange Board of India (SEBI) permission to tap phones while investigating insider trading cases.

The Centre is of the view that details of phone calls should be accessed only in case of threats to national security, terror financing, and money laundering, according to a report by Business Standard.

SEBI had requested the Centre for permission to intercept phone calls, similar to what the US Securities Exchange Commission (SEC) can do, the report said.

Moneycontrol could not independently verify the story.

SEBI declined to comment when contacted by Business Standard.

The Centre is of the view that such powers should be used sparingly, and, if it allows one to do so, the same authority will have to be given to other regulators.

"The regulator has been facing criticism for failing to get convicted those doing insider trading. This is because it is all but impossible to establish the charges, which could be proved only if SEBI can intercept the calls and electronic communication," a source told the publication.

At present, SEBI has the authority to ask for call records, such as the numbers dialled and the duration of the calls.