The Securities & Exchange Board of India (Sebi) has already started using new powers given to it by the government through an Ordinance, but the capital market regulator is now worried what it would do in case the ordinance doesn't become an act.

Sebi chairman U K Sinha said the ordinance had given the federal agency more powers against fraudsters and market manipulators by enabling it to prosecute fraudsters and recover money from erring individuals or companies.

Speaking on the topic, Mr. Sinha added, "My worry is that the Ordinance through which we have got these powers should be soon converted into an Act of Parliament, as we have already begun using them and have taken actions based on these powers."

Mr. Sinha also assured that sufficient safeguards had been incorporated to check any misuse of abuse of new powers given y the ordinance.

The government will have to promulgate the ordinance for a third time in case the Parliamentary Standing Committee (PSC) on Finance doesn't submit its report on the Securities Bill within the current session.

Addressing a gathering at an event organized by the National Stock Exchange (NSE), Union Finance Minister P. Chidambaram said that legislation and law making in the country is a complex process, dropping a hind that the government may promulgate the ordinance.

The ordinance allows Sebi chairman to authorize the investigating authority or officer-in-charge to conduct search and seize assets under the Sebi Act.