This setting is controlled by the iw.formspub.searchdcr.enabled parameterin the application_custom.xml file. That file is part of the UI toolkit and is described in detail in the TeamSite User Interface Customization Guide. Refer to that document for information about enabling Data Record Search.
You misunderstood.The question was not about TS Search Configuration. 6.7 provides "Search and Replace" Area at the bottom of a Data Capture Form. That's what tirudev is asking about. I'm not awareof any supported mechanism of removing it (for example, it is not covered by viewoptions' actionlist, etc)
Boris: are you sure?To remove the search and replace from an open DCR (in a DCT), you need to do exactly what the previous poster (kissthedevil) had said. If I am not mistaken original post is talking about the Search and Replace that you see when you have a DCT open and it only works on the current DCR only. Look at FP guide -- section "Enabling Data Record Search" (page 116 for TS 7 OR page 98 for TS 67x)