The Government has notified Securities Laws Amendment Act, which empowers the Securities Exchange Board of India,SEBI to clamp down on illicit money-pooling schemes and other frauds.

The Act, which has come into force through a gazette notification dated August 25, is part of the government and regulators' efforts to tighten the noose around fraudsters in the wake of several cases of illicit money-pooling activities including by ponzi operators.

The Securities Laws Amendment Act, which was cleared by Parliament earlier this month and amends all legislations governing capital markets, would also facilitate setting up of a special SEBI court to fast-track the investigation and prosecution process.

The new Act has as many as 57 clauses to amend various sections of the Sebi Act and two other related legislations.