``There are multiple agencies like Department of Company Affairs (DCA), Monopolies and Restrictive Trade Practices Commsission (MRTPC), Reserve Bank of India (RBI) with overlapping powers leading to duplicacy in regulation,'' he said. He said there should be single authority for investigating and regulating the securities market along with special courts to deal with matters relating to securities law.

Elaborating on the various lacunae in the SEBI Act, Mehta said there were no powers attached for search and seizure of companies whichdistribute ill-gotten profits. ``Quantum of monetary penalty is inadequate as the maximum permissible limit is only Rs 5 lakh wheras in developed markets penalty is three times of the offence,'' he said.

Mehta said there should be strict financial penalty of those making offences in the securities market. ``Powers to levy financial penalties have been successful in the capital market'' he said. The Securities Contract and Regulation Act (SCRA) should be repealed and its provision be suitability be incorporated in the SEBI Act, he said.

The SEBI chief also called for deletion of various sections relating to securities market from the Companies Act. ``There are various section in the Companies Act which should be incorporated in the SEBI Act,'' he said. Mehta said issues related to share transfer should should be delegated to the SEBI as the major transfer problem is with listed companies. He informed that Dhanuka committee has given its recommendations to government for amendment of the SEBI Act.