Miscellaneous
Section 16. Power of Central Government to issue directions.
16(1).
The following applies in addition to & does not override the other provisions of this Act, and the Depositories Act, 1996.
While exercising its powers or performing its functions under this Act:
The Board must follow directions given by the Central Government.
Such directions must relate to questions of policy, and be issued in writing by the Central Government from time to time.
The directions issued by the Central Government are binding on the Board.
Before issuing any such direction, the Board should, as far as practicable, be given an opportunity to express its views on the matter.
16(2).
The authority to decide whether a matter is a question of policy lies with the Central Government.
If there is any doubt or dispute on whether an issue is a policy matter, the Central Government’s decision will prevail.
Such a decision of the Central Government is final and binding.
The Board cannot challenge or override the Central Government’s determination on this issue.
Section 17. Power of Central Government to supersede the Board.
17(1).
If at any time the Central Government is of opinion that the following situations exist:
(a).
A grave emergency exists.
Due to this grave emergency, the Board is unable to discharge its functions and duties.
The functions and duties referred to are those:
Imposed on the Board by this Act.
Imposed on the Board under the provisions of this Act.
(b).
The Board has persistently made default in:
Complying with directions issued by the Central Government under this Act.
Discharging the functions and duties imposed on it by or under this Act.
The default is continuous or repeated, not isolated.
As a result of such persistent default:
The financial position of the Board has deteriorated.
The administration of the Board has deteriorated.
(c).
Certain circumstances exist.
Those circumstances make it necessary to act.
The action is required in the public interest.
The necessity is judged from the perspective of public welfare and interest, not private or individual interest.
Then:
The Central Government is empowered to take action.
Such action must be taken by issuing a notification.
The action involves supersession of the Board.
The supersession is for a specified period mentioned in the notification.
The period of supersession cannot exceed six months.
17(2).
Upon the issuance and publication of a notification under 17(1) for the supersession of the Board:
(a).
From the date of supersession, every member must step down.
All members shall vacate their offices.
The vacation of office is automatic and occurs by operation of law, not by resignation
(b).
From the date of supersession, such powers, functions, and duties:
Shall not be exercised by the Board.
Shall continue in this manner until the Board is reconstituted under 17(3).
These include powers, functions, and duties exercisable by the Board, or on behalf of the Board, under the provisions of this Act.
During this interim period, all such powers, functions, and duties shall be:
Exercised and discharged by such person or persons, as may be directed by the Central Government.
(c).
From the date of supersession, such property that is with the Board shall vest in the Central Government.
This includes property that is owned by the Board, or controlled by the Board.
The vesting is temporary.
The property shall continue to vest in the Central Government until the Board is reconstituted under 17(3).
17(3).
After the expiry period of the supersession of the Boar, the Central Government may reconstitute the Board.
Reconstitution is done by making fresh appointments.
Any person or persons who:
Had vacated their offices under Section 12(2)(a) shall not be deemed disqualified from being appointed again.
Vacation of office due to supersession does not create a bar to future appointment.
The Central Government has additional power to:
T0 act at any time.
Such action can be taken before the expiry of the period of supersession.
The action referred to above is called Reconstitution of the Board.
Therefore, the Central Government is not required to wait until the full supersession period ends.
17(4).
The Central Government must place before each House of Parliament:
The notification issued under 17(1) and a full report of the action taken under this section, and the circumstances leading to such action.
The laying of the notification and report must be done at the earliest possible opportunity.
Section 18. Returns and reports.
18(1).
The Board is under a statutory obligation to provide information to the Central Government.
The Board must furnish returns, statements, and particulars.
These particulars relate to any proposed programme, or any existing programme, for the promotion and development of the securities market.
The information must be furnished at such time, and in such form and manner, as may be prescribed, or as the Central Government may direct.
The requirement to furnish information arises whenever the Central Government so requires, from time to time.
This provision enables the Central Government to monitor, supervise, and guide the Board’s policy initiatives in the securities market.
18(2).
The Board must submit a report to the Central Government.
The report must be submitted within ninety days after the end of each financial year.
The report must be in the prescribed form.
The report must give a true and full account of the Board’s:
Activities.
Policy.
Programmes.
The report must relate to the previous financial year.
18(3).
A copy of such report must be placed before each House of Parliament.
The duty to lay the report lies on the Central Government.
The report must be laid as soon as may be after it is received.
Section 19. Delegation.
The Board has the power to delegate its powers and functions.
Delegation may be made by a general order or a special order in writing.
Delegation can be made to:
Any member of the Board.
Any officer of the Board.
Any other person.
The delegation may be subject to conditions, if any, as specified in the order.
Only such powers and functions under this Act as the Board considers necessary may be delegated.
Exception:
The powers under section 29 cannot be delegated.
The decision as to what powers to delegate rests with the Board.
Section20. Appeals.
20(1).
If any person is aggrieved by an order passed by the Board then:
Such an aggrieved person may prefer an appeal.
The appeal lies to the Central Government.
The appeal must be filed within such time as may be prescribed.
Provide that the order must be one:
Made before the commencement of the Securities Laws (Second Amendment) Act, 1999.
Made under this Act.
Under the rules or regulations framed under this Act.
Such an aggrieved person may prefer an appeal.
The appeal lies to the Central Government.
The appeal must be filed within such time as may be prescribed.
20(2).
An appeal will not be admitted if it is filed after the expiry of the prescribed period.
The time limit for filing the appeal is mandatory.
The appeal may still be admitted even after the expiry of the prescribed period.
Such delayed admission is allowed only if:
The appellant satisfies the Central Government and shows that there was sufficient cause for not filing the appeal within time.
The power to condone delay lies with the Central Government.
20(3).
An appeal must be filed in the prescribed form.
The appeal must be accompanied by a copy of the order that is being appealed against.
The appeal must also be accompanied by such fees as may be prescribed.
Compliance with form, documents, and fee requirements is mandatory for a valid appeal.
20(4).
The procedure for disposing of an appeal shall be as prescribed under the rules.
The authority deciding the appeal must follow the prescribed procedure.
Before disposing of the appeal, the appellant must be given a reasonable opportunity of being heard.
Section 20A. Bar of jurisdiction
With respect to orders passe by the Board, or the Adjudicating Officer.
No appeal shall lie against such orders except where an appeal is expressly provided under Sections 15T, or 20.
Apart from the above specified provisions, no other appeal is maintainable.
Civil courts have no jurisdiction in respect of:
Any matter in which the Board or the Adjudicating Officer is empowered, by or under this Act, to pass any order.
No court or other authority shall grant any injunction, in respect of any action taken or to be taken.
Provided that this act is in pursuance of any order passed by the Board or the Adjudicating Officer under this Act.
Section 21. Savings
No person is exempted from legal liability merely because of this Act.
The Act does not bar any suit, or any other legal proceedings.
Such suits or proceedings are those which:
Could have been brought even without this Act.
Suits which are independently maintainable under general law.
The Act operates in addition to, and not in derogation of, other legal remedies.
Section 22. Members, officers and employees of the Board to be public servants.
All the following persons are deemed to be public servants.
All members of the Board.
All officers of the Board.
All other employees of the Board.
This deemed status applies when they are acting or purporting to act in pursuance of any provision of this Act.
The term “Public Servant” is to be understood as defined under section 21 of the Indian Penal Code, 1860.
As a result, they are subject to penal liability, and entitled to statutory protections, applicable to public servants under law.
Section 23. Protection of action taken in good faith.
No suit, prosecution, or other legal proceeding shall lie against:
The Central Government,
The Board,
Any officer of the Central Government, or
Any member, officer, or other employee of the Board.
The protection applies to acts done, or intended to be done.
Such acts must be performed in good faith.
The acts must be done under this Act, or under the rules or regulations made thereunder.
The protection does not extend to acts done in bad faith, mala fide actions, or acts outside the scope of the Act.
Section 24. Offences.
24(1).
Even if a civil/monetary penalty has been awarded, criminal liability can still arise.
Any person who:
Contravenes the provisions of this Act.
Attempts to contravene the provisions of this Act.
Abets the contravention o this Act, or any rules or regulations made thereunder.
Then:
Such person shall be punishable with:
Imprisonment, which may extend to ten years, or fine, which may extend to ₹25 crore, or both imprisonment and fine.
24(2).
The following defaults attract criminal liability:
Failure to pay the penalty imposed by the Adjudicating Officer or the Board.
Failure to comply with directions or orders issued under the Act.
The punishment may include:
Imprisonment, for a term not less than one month, and which may extend to ten years.
Fine, which may extend to ₹25 crore.
Both imprisonment and fine.
Section 24A. Composition of certain offences.
Notwithstanding anything contained in the Code of Criminal Procedure, 1973:
Eligible offences may be compounded.
Compounding may take place before the institution of proceedings, or after the institution of proceedings.
Compounding can be done by the SAT or the court before which the proceedings are pending.
Exception:
Excluded offences:
The following offences cannot be compounded.
Offences punishable with imprisonment only.
Offences punishable with imprisonment and fine.
Section 24B. Power to grant immunity.
24B(1).
The Central Government has the power to grant immunity.
Such power is exercised on the recommendation of the Board.
Immunity may be granted only if the Central Government is satisfied that:
The person is alleged to have violated the Act or the rules/regulations & the person has made a full and true disclosure of the alleged violation.
Immunity may be granted subject to conditions, as the Central Government thinks fit.
The immunity may cover prosecution for any offence under this Act or the rules or regulations made under the Act.
This includes imposition of any penalty under this Act, in respect of the alleged violation.
Grant of immunity is discretionary and conditional.
Restriction on the Power of Granting Immunity
No immunity shall be granted by the Central Government if:
Proceedings for prosecution for the offence have already been instituted.
The cut-off point is the date of receipt of the application for grant of immunity.
If prosecution proceedings were instituted before the receipt of the immunity application then immunity cannot be granted.
Immunity is available only at a pre-prosecution stage.
No Obligation to Act under the Board’s Recommendation.
The Board’s recommendation under this sub-section is not binding.
The Central Government is not obliged to act in accordance with the Board’s recommendation.
The final discretion to grant or refuse immunity lies with the Central Government.
The Central Government may accept the recommendation, or reject it, based on its own satisfaction and judgment.
24B(2).
Immunity granted under 24B(1) can be withdrawn at any time.
The power to withdraw immunity lies with the Central Government.
Immunity may be withdrawn if the Central Government is satisfied that the person:
Did not comply with the conditions on which immunity was granted.
Gave false evidence during the proceedings.
Upon withdrawal of immunity the person may be tried for:
The offence in respect of which immunity was granted.
Any other offence connected with the contravention.
Additionally, the person becomes liable to penalties under this Act to the same extent as if no immunity had ever been granted.
Withdrawal restores full criminal and civil liability.
Section 25. Exemption from tax on wealth and income.
he provision operates notwithstanding anything contained in:
the Wealth-tax Act, 1957,
the Income-tax Act, 1961, or
any other law in force relating to tax on wealth, income, profits, or gains.
The following entities are covered:
(a) the Board; and
(b) the existing Securities and Exchange Board,
for the period from the date of its constitution
up to the date of establishment of the Board.
These entities shall not be liable to pay:
wealth-tax,
income-tax, or
any other tax.
The tax exemption applies in respect of:
their wealth,
income,
profits, or
gains derived.
The provision grants a statutory tax exemption overriding all other tax laws.
Section 26. Cognizance of offences by courts.
26(1).
No court shall take cognizance of:
Any offence punishable under this Act.
Any offence punishable under the rules or regulations made thereunder.
Exception
Cognizance can be taken only on a complaint made by the Board..
Courts cannot act suo motu or on complaints by private persons or other authorities.
26(2). Omitted
Section 26A. Establishment of Special Courts.
26A(1).
The Central Government is empowered to take action.
The purpose of the action is to ensure speedy trial of offences under this Act.
The Central Government may act by issuing a notification.
By such notification, the Central Government may: Establish Special Courts, or designate existing courts as Special Courts.
The Central Government may establish or designate as many Special Courts as may be necessary.
These Special Courts will have jurisdiction to try offences under this Act.
26A(2).
A Special Court shall consist of only one judge.
The judge is appointed by the Central Government.
Such appointment requires the concurrence (approval) of the Chief Justice of the High Court.
The relevant High Court is the one within whose territorial jurisdiction the judge to be appointed is working.
Thus, the appointment involves: Executive action by the Central Government, and judicial concurrence by the Chief Justice of the High Court.
26A(3).
The eligibility criteria for appointment as a judge of a Special Court is as follows:
A person shall not be qualified for such appointment unless:
Immediately before the appointment, the person is any of the following:
Holding the office of a Sessions Judge.
Holding the office of an Additional Sessions Judge, as the case may be.
Only serving judicial officers at the level of Sessions Judge or Additional Sessions Judge are eligible.
Section 26B. Offences triable by Special Courts.
Notwithstanding anything contained in the Code of Criminal Procedure, 1973:
With respect to offences that are:
Committed before the commencement of the Securities Laws (Amendment) Act, 2014.
Committed on or after the date of such commencement.
All such offences shall be taken cognizance of, and tried exclusively by a Special Court.
The competent Special Court is the Special Court established for the area where the offence was committed.
If more than one Special Court exists for the same area then:
The offence shall be tried by such Special Court as may be specified by the concerned High Court
Section 26C. Appeal and revisions.
The High Court may exercise all powers conferred on it under:
Chapter XXIX of the Code of Criminal Procedure, 1973 (Appeals).
Chapter XXX of the Code of Criminal Procedure, 1973 (Revision).
These powers are exercisable so far as may be applicable.
The High Court shall exercise these powers as if:
The Special Court were a Court of Session.
The Special Court were trying cases within the local limits of the High Court’s jurisdiction.
The objective is to place the Special Court on the same footing as a Sessions Court for purposes of appeal and revision.
Section 26D. Application of Code to proceedings before Special Court
26D(1).
Unless otherwise provided in this Act:
The Code of Criminal Procedure, 1973 (CrPC) shall apply to all proceedings before a Special Court.
For the purposes of applying the CrPC the Special Court shall be deemed to be a Court of Session.
The person conducting the prosecution before a Special Court shall be deemed to be: a Public Prosecutor.
The term Public Prosecutor is to be understood as defined under Section 2(u) of the Code of Criminal Procedure, 1973.
26D(2).
There is an eligibility criteria for the person conducting prosecution before a Special Court.
Such person must satisfy either of the following conditions:
He has been in practice as an advocate for a period of not less than seven years.
He has held a post under the Union, or a State Government, for a period of not less than seven years, which required special knowledge of law.
Section 26E. Transitional provisions.
Until a Special Court is established, offences shall not be left unattended.
During this interim period, the offence shall be taken cognizance of, and tried by a Court of Session.
The Court of Session must be one exercising jurisdiction over the area where the offence is committed.
This arrangement applies notwithstanding anything contained in the Code of Criminal Procedure, 1973.
Once a Special Court is established, jurisdiction shifts from the Court of Session to the Special Court.
Nothing in this section shall limit or affect the powers of the High Court.
Under section 407 CrPC, the High Court may transfer any case, or transfer a class of cases.
This power applies to cases taken cognizance of by a Court of Session under this section.
Thus, even during the interim period before establishment of a Special Court, the High Court retains full transfer powers.
Section 27. Contravention by companies.
27(1).
Under circumstances where a contravention of this Act, or any rule, regulation, direction, or order made thereunder, has been committed by a company:
In such a case, two categories of persons are deemed guilty:
The company itself.
Every person who, at the time the contravention was committed was in charge of, and was responsible to the company for the conduct of its business.
Such persons are deemed to be guilty of the contravention by legal fiction.
Both the company and the responsible persons are liable to be proceeded against, and may be punished accordingly under the Act.
Defence Available to Persons in Charge of Company’s Business
The defence is available to a person who was in charge of, and responsible for the conduct of the business of the company.
Such person shall not be liable to punishment if he proves either of the following:
The contravention was committed without his knowledge.
He had exercised all due diligence to prevent the commission of the contravention.
The burden of proof lies on the concerned person claiming the defence.
27(2).
Notwithstanding anything in 27(1) Liability arises where it is proved that the contravention was:
Committed with the consent of any director, manager, secretary, or other officer of the company.
Committed with the connivance of any director, manager, secretary, or other officer of the company.
Attributable to neglect on the part of any director, manager, secretary, or other officer of the company.
Such director, manager, secretary, or other officer shall:
Be deemed to be guilty of the contravention.
Be liable to be proceeded against and punished accordingly.
This provision imposes personal liability on company officials based on consent, connivance, or negligence.
It operates in addition to general vicarious liability provisions.
Explanation:
For the purposes of this section”
Company means any body corporate, and includes a firm and any other association of individuals.
Director, in relation to a firm means a partner of the firm.
As a result:
Liability provisions apply not only to companies in the strict corporate sense, but also to firms and associations.
Partners of a firm are treated as directors for the purpose of fixing liability under this section.
Section 28. Power to exempt - Omitted.
Section 28A. Recovery of amounts.
28A(1).
Recovery action can be initiated if a person:
Fails to pay a penalty imposed under this Act.
Fails to comply with a direction of the Board to refund money.
Fails to comply with a disgorgement order issued under section 11B.
Fails to pay any fees due to the Board.
The Recovery Officer may prepare a statement called a certificate.
This is signed by the Recovery Officer in the prescribed form specifying the amount due from the person.
After issuing the certificate, the Recovery Officer shall recover the amount mentioned in it.
Recovery may be done by one or more prescribed modes:
(a). Attachment and sale of the person's movable property.
(b). Attachment of the person's bank accounts.
(c). Attachment and sale of the person's immovable property.
(d). Arrest of the person and his detention in prison.
(e). Appointing a receiver for the management of the person's movable and immovable properties.
Application of Income Tax Act
For the purpose of recovery, certain provisions of the Income-tax Act, 1961 are applied.
The applicable provisions include:
Sections 220 to 227
Section 228A
Section 229
Section 232
Second Schedule
Third Schedule
In addition, the Income-tax (Certificate Proceedings) Rules, 1962 also apply.
These provisions and rules apply as they are in force from time to time.
They apply only to the extent relevant and in so far as may be.
Necessary modifications are deemed to be made while applying them.
The provisions are applied as if they were part of this Act itself.
Wherever the Income-tax Act refers to income-tax, it shall be read as amount due under this Act.
Explanation 1 :
For the purposes of this sub-section:
A person’s movable or immovable property and monies held in bank accounts are not limited to assets standing in his own name.
Such property or monies also include any asset or bank balance that:
Has been transferred, whether directly or indirectly, on or after the date on which the amount specified in the recovery certificate became due.
This specifically includes transfers made by the person to his spouse, his minor child, his son’s wife, or his son’s minor child.
The transfer must be one made otherwise than for adequate consideration which means it is not supported by a fair or genuine exchange of value.
Even if the movable or immovable property or the monies in bank accounts are held by, or stand in the name of, any of the above-mentioned persons:
They shall still be treated as the person’s own property for recovery purposes.
In the case of property or monies transferred to the person’s minor child or to his son’s minor child:
Such assets shall continue to be included in the person’s movable or immovable property or bank account monies.
This inclusion continues even after the minor child or the son’s minor child attains majority.
The inclusion of such transferred property or monies is for the purpose of recovering any amount due from the person under this Act.
This inclusion continues so until the recovery is complete.
Explanation 2:
Any reference under the Second Schedule and Third Schedule to the Income-tax Act, 1961 and the Income-tax (Certificate Proceedings) Rules, 1962 is clarified.
The term “Assessee” used in these Schedules or Rules shall not be read in its ordinary meaning.
Such reference to the assessee shall be construed as a reference to the person specified in the certificate.
Explanation 3:
Any reference to an appeal in Chapter XVII-D and the Second Schedule to the Income-tax Act, 1961 is clarified.
Such reference to an appeal shall not be understood as an appeal under the Income-tax Act.
Every such appeal shall be construed as an appeal before the Securities Appellate Tribunal under section 15T of this Act.
Explanation 4:
With respect to interest referred to in section 220 of the Income-tax Act, 1961:
Such interest becomes applicable in relation to an amount payable by a person.
The interest shall commence from the date on which the amount became payable by that person.
28A(2).
The Recovery Officer is vested with specific statutory powers.
While exercising powers under 28A(1), the Recovery Officer may seek assistance.
Such assistance may be taken from the local district administration.
28A(3).
Notwithstanding anything contained in any other law for the time being in force:
Recovery of amounts by a Recovery Officer under 28A(1):
Arises due to non-compliance with a direction issued by the Board under section 11B.
The recovery of these amounts shall have precedence over any other claim against the person concerned.
28A(4).
For the purposes of 28(1), 28(2), and 28(3):
The expression Recovery Officer means any officer of the Board.
Such officer must be authorised by the Board.
The authorisation may be by a general or special order.
The authorisation must be in writing to exercise the powers of a Recovery Officer.
Section 28B. Continuance of proceedings.
28B(1).
Under circumstances where a person dies:
The legal representative of the deceased becomes liable to pay the amount.
The liability is for any sum which the deceased would have been liable to pay if he had not died.
Such liability is in the like manner and to the same extent as that of the deceased.
With respect to penalties payable under this Act:
A legal representative shall be liable for the penalty only if it was imposed before the death of the deceased person.
28B(2).
For the purposes of 28B(1):
(a).
With respect to proceedings for disgorgement, refund, or recovery before the Recovery Officer under this Act:
The proceedings must have been initiated against the deceased before his death.
Such proceedings shall be deemed to have been initiated against the legal representative.
The proceedings may be continued against the legal representative from the stage at which they stood on the date of the death of the deceased.
All provisions of this Act shall apply to such proceedings accordingly.
Proceedings for levy of penalty are expressly excluded and do not follow the above rule with respect to proceedings against the legal representative.
(b).
With respect to proceedings for disgorgement, refund, or recovery before the Recovery Officer under this Act:
Proceedings which could have been initiated against the deceased if he had survived may be initiated against the legal representative..
All provisions of this Act shall apply to these proceedings accordingly.
Proceedings for levy of penalty are expressly excluded and do not follow the above rule with respect to proceedings against the legal representative.
28B(3).
The legal representative is personally liable for any sum payable by him in that capacity.
Such liability arises if the sum remains undischarged.
While the liability remains undischarged, the legal representative creates a charge on, disposes of, or parts with assets of the deceased’s estate.
The assets must be those which are in, or may come into, the possession of the legal representative.
The personal liability of the legal representative is limited to the value of the asset so charged, disposed of, or parted with.
Example:
A person dies leaving unpaid dues of ₹10 lakh, and his son becomes the legal representative of the estate.
The son receives estate assets worth ₹6 lakh, and the liability remains unpaid.
While the liability is still undischarged, the son sells a property of the deceased worth ₹4 lakh.
By disposing of the estate asset, the son becomes personally liable in his capacity as legal representative.
However, his personal liability is limited to ₹4 lakh, being the value of the asset he disposed of, and not beyond that amount.
28B(4).
The liability of the legal representative is limited to: The extent to which the estate of the deceased is capable of meeting the liability.
Explanation:
For the purposes of this section “Legal Representative means”:
A person who in law represents the estate of a deceased person.
The definition includes any person who intermeddles with the estate of the deceased.
Representative Character and Devolution of Estate
Where a person brings a suit or is sued not in a personal capacity, but in a representative capacity:
If such a person dies during the pendency of the suit or proceeding, the estate does not remain unrepresented.
The person on whom the estate legally devolves after the death steps into the place of the deceased.
That successor is treated as the “legal representative” for the purpose of continuing or defending the suit or proceeding.
Example:
A trustee files a case on behalf of the estate of a deceased person.
The trustee is suing in a representative character, not in his personal capacity.
During the pendency of the case, the trustee dies.
The estate legally devolves on another person, such as a newly appointed trustee or legal heir.
That person steps into the proceedings and is treated as the legal representative, and the case continues from the same stage.
Section 28C. Powers of Board not to apply to International Financial Services Centre.
Notwithstanding anything contained in any other law for the time being in force , the powers exercisable by the Board under this Act shall:
(a).
Not extend to an International Financial Services Centre.
These International Financial Services Centre are set up under section 18(1) of the Special Economic Zones Act, 2005.
(b).
In fact , the powers exercisable by this Board shall be exercised by:
International Financial Services Centres Authority established Section 4(1) of the International Financial Services Centres Authority Act, 2019.
The powers exercisable will be for:
Regulation of financial products.
Financial services.
Financial institutions that are permitted in the International Financial Services Centres are concerned.
Section 29. Power to make rules
29(1).
The power to make rules is vested in the Central Government.
Such rules may be made by issuing a notification.
The rules are intended to carry out the purposes of this Act.
29(2).
The rule-making power is specific as well as general in nature.
The exercise of this power is without prejudice to the general rule-making authority already conferred.
The rules may provide for all or any of the following matters:
(a).
The term of office of the Chairman and the members.
It also covers the other conditions of service of the Chairman and the members.
These matters are governed under Section 5(1) of this Act.
(b).
The additional functions that may be performed by the Board under section 11.
(c).
Omitted.
(d).
The manner in which the accounts of the Board shall be maintained under section 15.
(da).
The manner of inquiry under Section 15-I(1).
(db).
The salaries and allowances of the Presiding Officers, Members and other officers and employees of the Securities Appellate Tribunal.
Other terms and conditions of service of residing Officers, Members and other officers and employees of the Securities Appellate Tribunal.
The above is governed in accordance to Section 15-O(3) of section 15S.
(dc).
The procedure for the investigation of misbehaviour or incapacity of the Presiding Officers, or other Members of the SAT.
This is governed in accordance with Section 15Q(3).
(dd).
Appeal are to be filed before the Securities Appellate Tribunal.
The filing of the appeal and the fees payable thereof is governed by section 15T of this Act.
(e).
The form and the manner in which returns and report to be made to the Central Government.
This is governed in accordance with Section 18 of this Act.
(f).
Any matter not expressly specified elsewhere may be covered.
Such matter may be required to be prescribed by rules.
Provision may also be made by rules in respect of such matters under this Act.
Section 30. Power to make regulations
30(1).
The power to make regulations is vested in the Board.
Such regulations may be made by notification.
The regulations must be consistent with this Act and with the rules made under this Act.
The regulations are intended to carry out the purposes of this Act.
30(2).
The regulation-making power is clarified to be both specific and general in nature.
The exercise of this power does not limit the general authority already conferred.
Regulations may provide for all or any of the matters :
(a).
The times at which meetings of the Board are to be held.
It also covers the places where such meetings shall take place.
The procedure to be followed at meetings of the Board is included.
The required necessary quorum for the transaction of business at such meetings.
These matters are governed in accordance with Section 7 of this Act.
(b).
The terms of service of officers and employees of the Board.
It also covers the other conditions of service of such officers and employees.
These matters are governed under Section 9 of this Act.
(c).
Matters incidental or connected to the issue of capital and transfer of securities are included.
It prescribes the manner in which such matters are to be disclosed by companies.
These disclosures are to be made in accordance with section 11A of this Act.
(ca).
The utilisation of the amount credited under Section 11(5) of the Act.
(cb).
The fulfilment of conditions applicable to a collective investment scheme.
It covers conditions other than those specifically mentioned elsewhere.
These conditions arise under Section 11AA(2A) of this Act.
(d).
The conditions subject to which a certificate of registration is issued.
The amount of fee payable for the certificate of registration.
The manner of suspension of the certificate of registration is covered.
The manner of cancellation of the certificate of registration is also included.
These matters are governed under section 12 of this Act.
(da).
The terms determined by the Board for settlement of proceedings.
Such terms are determined under Section 15JB(2) of this Act.
It also covers the procedure for conducting settlement proceedings.
The procedure is governed under of section 15JB(3) of this Act.
(db).
Any matter not specifically listed elsewhere may be covered.
Such matter may be required to be specified by regulations.
Provision may also be made by regulations in respect of such matter under this Act.
Section 31. Rules and regulations to be laid before Parliament.
Every rule and every regulation made under this Act shall be placed before each House of Parliament.
Such laying shall be done as soon as possible after the rule or regulation is made.
The rule or regulation shall remain before Parliament for a total period of thirty days.
This period of thirty days may be in one session or in two or more successive sessions.
Before the expiry of the session immediately following the session or successive sessions, both Houses may consider the rule or regulation.
If both Houses agree to make any modification, the rule or regulation shall thereafter have effect only in the modified form.
If both Houses agree that the rule or regulation should not be made, it shall thereafter have no effect.
Any such modification or annulment shall not affect the validity of anything already done under that rule or regulation.
Section 32. Application of other laws not barred.
The provisions of this Act operate in addition to the provisions of other laws.
This Act does not override or reduce the effect of any other law for the time being in force.
Section 33. Amendment of certain enactments - Repealed.
Section 34. Power to remove difficulties.
34(1).
If any difficulty arises in giving effect to the provisions of this Act then:
In such a case, the Central Government may act by issuing an order.
The order must be published in the Official Gazette.
The order may make provisions necessary to remove the difficulty.
Such provisions must not be inconsistent with the provisions of this Act.
No order under this section can be made after the expiry of five years from the commencement of this Act.
34(2).
Every order made under this section must be laid before each House of Parliament.
Such laying shall be done as soon as may be after the order is made.
Section 34A. Validation of certain acts.
The provision covers any act or thing done, or purported to have been done, under the principal Act.
Such acts include calling for information from, or furnishing information to, other authorities.
These authorities may be located in India or outside India.
The authorities must have functions similar to those of the Board.
The provision also applies to acts relating to the settlement of administrative and civil proceedings.
All such acts shall, for all purposes, be deemed to be valid and effective.
They shall be treated as if the amendments to the principal Act had been in force at all material times.
Example:
Before the amendment, the Board shared investigation details with a foreign securities regulator having functions similar to the Board.
At that time, the law was unclear or had not yet been formally amended to expressly allow such information sharing.
After the amendment comes into force, this provision applies retrospectively.
The earlier act of sharing information is deemed to be valid and effective.
It is treated as if the amended provisions had existed at the time the information was shared.
Section 35. Repeal and saving.
35(1).
There essentially existed a law called The Securities and Exchange Board of India Ordinance, 1992
This Ordinance was Ordinance 5 of 1992.
The Ordinance is now declared repealed.
Repeal means the Ordinance is cancelled and no longer in force.
After repeal, the provisions of this Ordinance cease to have legal effect.
35(2).
Even though the Ordinance has been repealed:
Any act done or action taken under that Ordinance while it was still in force shall not become invalid because of the repeal.
Such acts or actions will be treated as if they were done or taken under this Act.
They will also be deemed to have been done under the corresponding provisions of the present Act
