Lokpal & SEBI + UPSC?.ToString()?? UPSC?.ToString()+" Current Affairs";

About Lokpal:
The Lokpal and Lokayuktas Bill, 2011 was passed by the Parliament on 17th December 2013. The Bill received the Hon'ble President's assent on 1st January 2014 and was notified on the same day as The Lokpal and Lokayuktas Act,2013 (No.01 of 2014). The Act came into force on 16th January, 2014 and has been amended once in 2016 since its notification.
The current Chairperson of Lokpal is Shri Justice Ajay Manikrao Khanwilkar.
Lokpal and Lokayukta:
Lokpal and Lokayukta are public institutions established in India to investigate and prosecute corruption among public officials. 
Recommendation of ARC: In the 1960s, the Administrative Reforms Commission of India suggested the creation of two specialized authorities, the Lokpal and Lokayukta, to address citizens' complaints and grievances pertaining to corruption.
Role of Ombudsman: Lokpal and Lokayukta perform the function and role of an “Ombudsman”. They inquire into allegations of corruption against certain public bodies/organizations and for other related matters.
National and state level: The Lokpal is a national-level institution, while the Lokayukta is a state-level institution. Both have the power to investigate and prosecute corruption cases, and both are headed by a panel of judges or retired judges. 
Jurisdiction: The Lokpal and Lokayukta handle complaints against ministers and top government officials.
What is the background and genesis of Lokpal and Lokayukta in India?
The concept of ombudsman originated in 1809 in Sweden.
In India, the former law minister Ashok Kumar Sen became the first Indian to propose the concept of a constitutional Ombudsman in Parliament in the early 1960s.
Further, Dr. L. M. Singhvi coined the term Lokpal and Lokayukta in 1963. Later in the year 1966, the First Administrative Reform Commission passed recommendations regarding the setting up of two independent authorities at the central and at the state level.
After the recommendations from the First Administrative Reform Commission, the Lokpal bill was passed in Lok Sabha in 1968 but lapsed due to the dissolution of Lok Sabha. Since then, the bill was introduced many times in Lok Sabha but has lapsed.
Later, in 2002, the National Commission for Review of the Working of the Constitution (NCRWC) recommended the appointment of the Lokpal and Lokayuktas. In 2005, the 2nd Administrative Reform Commission(ARC) also recommended the same.
The Anna Hazare movement, also known as India Against Corruption (IAC) movement, was led by social activist Anna Hazare, who began a hunger strike in April 2011 to demand the creation of an independent, effective anti-corruption body known as the Lokpal.
As a result of the movement, the Lokpal and Lokayukta Bill was introduced in the Indian parliament and passed into law in 2013.
It received assent from the President on 1 January 2014 and came into force on 16 January 2014.
The institution of ombudsman is based on the doctrine of administrative accountability to legislature
What are the key provisions of the Lokpal and Lokayukta Act 2013?
Key provisions of the Act include
Selection Committee: which includes the Prime Minister as Chairperson, Speaker of Lok Sabha, Leader of Opposition in Lok Sabha, Chief Justice of India or a Judge nominated by him/her and one eminent jurist appointed by President.
Jurisdiction: Jurisdiction includes the Prime Minister, Ministers, Members of Parliament, and group A, B, C, and D of government employees.
Composition: It is composed of a chairperson and a maximum of eight members, with half of them being judicial members. 50% of members belong to Scheduled Castes, Scheduled Tribes, Other Backward Classes, minorities, and women.
Superintendence: It has the power of superintendence and directs any investigative agency, including the Central Bureau of Investigation, for cases referred to it by the Lokpal.
Foreign Contribution (Regulation) Act, 2010 (FCRA): Jurisdiction includes foreign donations in excess of Rs 10 Lakhs per year under the Foreign Contribution Regulation Act.
The Act provides a requirement for establishing Lokayukta institutions through state legislation within 365 days of the Act coming into effect.
Composition and Tenure of Lokpal:
Lokpal is a multi-member body that consists of one chairperson and a maximum of 8 members (1+8)
Chairperson: of the Lokpal should be either the former Chief Justice of India or the former Judge of Supreme Court or an eminent person with impeccable integrity and outstanding ability,
having special knowledge and expertise of minimum 25 years in the matters relating to anti-corruption policy,
public administration, vigilance, finance including insurance and banking, law and management.
Out of the maximum eight members, half will be judicial members and minimum 50% of the Members will be from SC/ ST/ OBC/ Minorities and women.
The judicial member of the Lokpal is either a former Judge of the Supreme Court or a former Chief Justice of a HIGH COURT.
The term of office for Lokpal Chairman and Members is 5 years or till the age of 70 years.
Appointment Process of Lokpal 
A search committee recommends a panel of names to the high-power selection committee.
The members are appointed by the president on the recommendation of a Selection Committee.
The President will appoint the recommended names.
Selection Committee:
1. Prime Minister who is the Chairperson;
2. Speaker of Lok Sabha
3. Leader of Opposition in Lok Sabha
4. Chief Justice of India or a Judge nominated by him/her
5. One eminent jurist
Conditions of Service for Lokpal and Its Members:
The Salary allowances and other conditions of service of the chairperson and members are equivalent to that of Chief Justice of India and Judge of the SUPREME COURT respectively.
They are not eligible for reappointment and cannot hold any constitutional or governmental office.
They cannot contest any elections for a period of 5 years.
PM’s Exemption in Lokpal Inquiries:
It does not allow a Lokpal inquiry if the allegation against the PM relates to international relations, external and internal security, public order, atomic energy and space.
Complaints against the PM are not to be probed unless the full Lokpal bench considers the initiation of inquiry and at least 2/3rds of the members approve.
Such an inquiry against the PM (if conducted) is to be held in camera and if the Lokpal comes to the conclusion that the complaint deserves to be dismissed, the records of the inquiry are not to be published or made available to anyone.
Jurisdiction of the Lokpal included the Prime Minister except on allegations of corruption relating to international relations, security, the public order, atomic energy and space.
The Lokpal does not have jurisdiction over Ministers and MPs in the matter of anything said in Parliament or a vote given there.
Its jurisdiction also includes any person who is or has been in charge (director/ manager/ secretary) of anybody/ society set up by central act or any other body financed/ controlled by central government and any other person involved in act of abetting, bribe giving or bribe taking.
It has the powers to superintendence over, and to give direction to CBI.
Lokpal’s Vigilance and Authority: Powers to Combat Corruption:
It has superintendence over the Central Bureau of Investigation and can give directions to it.
If a case is referred to CBI by Lokpal, the investigating officer in such a case cannot be transferred without the approval of Lokpal.
Lokpal will have an Inquiry Wing and a Prosecution Wing. The Inquiry Wing has the powers of a Civil Court.
It can confiscate assets, proceeds, receipts and benefits arisen or procured by means of corruption in special circumstances.
It can transfer or suspend public servants connected with allegations of corruption.
It has the power to give directions to prevent the destruction of records during the preliminary inquiry.
Lokpal’s Functions and Anti-Corruption Initiatives:
A complaint can be made to the Lokpal for an offence under the Prevention of Corruption Act.
The Lokpal may order a preliminary inquiry by its Inquiry Wing or refer it to any investigation agency like the CBI.
However, the Lokpal should establish that a prima facie case exists after seeking an explanation from the public servant as well as his competent authority.
With respect to Central Government Servants, it may refer cases to the Central Vigilance Commission.
Preliminary Enquiry report should be done within 60 days.
The preliminary investigation should normally be completed within 90 days.
A Lokpal bench of not less than 3 members considers it and, after giving an opportunity to the public servant, decides on a further investigation. It may dismiss, initiate a full investigation, or start departmental proceedings.
The trials will be held in special courts, which must complete them within one year.
Extensions can be made, but the total period cannot exceed two years.
What is the existing governance framework to check corruption in India?
Prevention of Corruption Act, 1988: It is the main law for addressing corruption in India. It provides for the punishment of public servants who engage in corrupt practices.
Central Bureau of Investigation (CBI): Main agency responsible for investigating corruption cases involving public servants.
Central Vigilance Commission (CVC) and State Vigilance Commission: Handle citizens' grievances related to corruption.
National Human Rights Commission (NHRC): Citizens can file complaints if they feel that their rights have been violated.
The All-India Services (Conduct) Rules, 1968 prohibit government employees from engaging in any activities that may compromise their integrity or impartiality, such as accepting gifts or bribes, engaging in partisan political activities, or disclosing confidential information.
The Central Civil Services (Conduct) Rules, 1964 prohibit central government employees from engaging in activities that may compromise their integrity or impartiality.
Administrative tribunals such as Central Administrative Tribunal (CAT) are specialized courts that hear and decide disputes related to the administrative actions of government agencies related to matters of corruption.
What are the limitations of the Lokpal and Lokayukta Act 2013?
The Lokpal and Lokayukta Act 2013 has several drawbacks that have been criticized by experts and activists. Some of these include
Lack of independence: The act allows the government to have a significant influence over the appointment and functioning of the Lokpal, which may compromise its independence.
Anonymous complaints not allowed: The act does not permit anonymous complaints, which may deter potential whistleblowers from coming forward.
Limitation of 7 years: The act sets a 7-year limitation period to file a complaint, which may not be sufficient for some cases.
Heavy punishment for false complaints: The act provides for severe punishment for false or frivolous complaints, which may deter people from coming forward with valid complaints.
Lack of transparency: The act provides for a non-transparent process for dealing with complaints against the Prime Minister.
The Lokpal cannot initiate an investigation on its own against any public servant.
The form of the complaint is given more importance than the content of it.
About Securities and Exchange Board of India (SEBI):
SEBI is a statutory body established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
The basic functions of the Securities and Exchange Board of India is to protect the interests of investors in securities and to promote and regulate the securities market.
Historical Background of SEBI:
Before the establishment of SEBI, the Indian securities market was regulated by the Controller of Capital Issues (CCI), a body created under the Capital Issues (Control) Act of 1947. However, by the late 1980s, the Indian securities market had grown significantly, and the CCI's limited regulatory framework became increasingly inadequate to address the complexities of the evolving market.
In response to the rising number of market malpractices and investor grievances, the Indian government established the Securities and Exchange Board of India (SEBI) in 1988. 
However, SEBI initially lacked statutory powers, which limited its effectiveness in controlling fraudulent activities in the market.
The need for a more empowered regulatory authority became evident in the wake of the Harshad Mehta scam in 1992, which exposed significant loopholes in the financial and stock market systems. 
In the same year, the SEBI Act, 1992 was passed by the Indian Parliament, giving SEBI statutory powers and the authority to regulate the securities market.
What is the Structure of SEBI?
SEBI Board consists of a Chairman and several other whole time and part time members.
SEBI also appoints various committees, whenever required to look into the pressing issues of that time.
Further, a Securities Appellate Tribunal (SAT) has been constituted to protect the interest of entities that feel aggrieved by SEBI’s decision.
SAT consists of a Presiding Officer and two other Members.
It has the same powers as vested in a civil court. Further, if any person feels aggrieved by SAT’s decision or order can appeal to the Supreme Court.
What are the Powers of SEBI?
SEBI holds extensive powers to regulate and control the securities market in India. These powers are equivalent to those of a civil court under the Code of Civil Procedure, 1908, allowing SEBI to investigate and take necessary actions to protect investor interests and ensure market integrity. SEBI’s powers in this regard include the following:
Discovery and production of books of accounts and other documents at a specified place and time.
Summoning and enforcing attendance of individuals and examining them under oath.
Inspection of any books, registers, or other documents of any person or company involved in the securities market.
Additionally, SEBI can take the following measures to safeguard the market, either during an investigation or after its completion:
Suspend trading of any security on a recognized stock exchange.
Restrain individuals or entities from accessing the securities market and prohibit them from buying, selling, or dealing in securities.
Suspend office-bearers of any stock exchange or self-regulatory organization from holding their positions.
Impound and retain proceeds or securities related to transactions under investigation.
What are the functions of SEBI?
It functions to fulfill the requirements of three categories –
Issuers – By providing a marketplace in which the issuers can increase their finance.
Investors – By ensuring safety and supply of precise and accurate information.
Intermediaries – By enabling a competitive professional market for intermediaries.
SEBI perform the function of registration and regulation of the working of venture capital funds and collective investment schemes including mutual funds.
It also works for promoting and regulating self-regulatory organizations and prohibiting fraudulent and unfair trade practices relating to securities markets.
Securities Appellate Tribunals:
The Securities Appellate Tribunal (SAT) was established under Section 15K of the SEBI Act to hear appeals against orders issued by SEBI or an adjudicating officer under the SEBI Act. SAT ensures an independent judicial review of SEBI’s decisions. The presiding officer of SAT must either be a sitting or retired Supreme Court judge, a Chief Justice of a High Court, or a High Court judge with at least seven years of service. 
Power of a Civil Court: The Securities Appellate Tribunal has the same powers as a civil court when handling cases. 
Further Appeal: If a person is dissatisfied with SAT’s ruling, they can appeal to the Supreme Court within 60 days of receiving the order.
Note: The current  Chairperson of SEBI is Madhabi Puri Buch.