SEBI and ED coordination in financial crime probes intensifies, with authorities releasing 31 FAQs on mutual investigations, PMLA linkages, and legal defences.
Regulators Clarify SEBI-ED Coordination Framework
In response to growing inter-agency enforcement actions, a joint reference document outlines 31 frequently asked questions on the SEBI-Enforcement Directorate (ED) nexus in probing financial irregularities, including fraud, market manipulation, and proceeds of crime.
The guidance clarifies procedural aspects of information sharing, attachment of assets under the Prevention of Money Laundering Act (PMLA), and handling of SEBI-initiated adjudication alongside ED investigations. It also addresses defences available to entities and individuals under both securities and anti-money laundering laws.
Practitioners must now anticipate coordinated raids, summons, and data requests from both agencies. Legal strategies should account for overlapping jurisdictions, evidentiary standards, and the right against self-incrimination. The document underscores the need for proactive compliance audits and crisis management plans in regulated entities.
