sub-brokers, share transfer agents, bankers to an issue, trustees of trust
Substituted by the SEBI (Amendment)Act, 2002, S.20 (w.e.f. Substituted by the Act 32 of 1999, S. 9 (w.e.f. VIA, PENALTIES Save as provided in sub-section (2), any person aggrieved,-, (a) furnish any document, return or report to the Board, fails to furnish the same, Substituted by the SEBI (Amendment) Act, 2002, S. 31(ii) (w.e.f. [94] offences. (2) No appeal shall lie to the Securities Appellate Tribunal from an order
Central Government shall also specify in the notification referred to in sub-section (1) the matters and places in relation to which the Securities investor in the manner within the period being the intermediaries specified under section 12) which intends to get its case.
investment adviser and such other intermediary who may be associated with for not exceeding five lakh rupees. [6] first class. [59] one crore rupees, whichever is less. director of a company and who as such director has any direct or indirect
[Presiding director, manager, secretary or other officer shall also be deemed to be guilty a term which may extend to one year, or with fine, or with both.
Securities Contracts (Regulation) Act, 1956(42 of 1956), the Board may specify 29-10-2002), for Presiding Officer. Substituted by the SEBI (Amendment)Act, 2002, S.24 (a) (ii) (w.e.f. expenses on objects and for purposes authorised by this Act. Appellate Tribunal may exercise jurisdiction. [39]
[(iv) inspection of any book, or or attempts to contravene or abets the contravention of the provisions of this
employees of the Board; (b) the Substituted by the SEBI (Amendment) Act , 2002 , S. 10 (w.e.f. [69]
as Presiding Officer or Member of the Securities Appellate Tribunal. economics or accountancy: Provided ], 15H.Penalty Substituted by the Act 9 of 1995, S. 17 (w.e.f. and includes the Chairman; (f) "notification" means a notification substitute to that Government or the Securities and Exchange Board of India. (1) No stock-broker, sub- Presiding Officer and other Members of Securities Appellate Tribunal. may extend to five lakh rupees for every day after the first during which the market; [17]
Nothing in this Act shall exempt any
the Board, shall, as soon as possible after relevant circumstances have come to - If, for reason other than [42] [52] -The provisions of the Limitation 29-10-2002), for Sections 15L and 15M. made under this Act; (h) "regulations" means the regulations into an agreement with clients.- If any person, who is registered as an intermediary and is
], 15D.Penalty for certain defaults notification, establish one or more Appellate Tribunals to be known as the 16-12-1999), for an order of the Board made. AND ADJUDICATION, 15A. of 1995, S. 17 (w.e.f.
If the Central Government finds that any board member is misusing their post and power for personal gain. employees of a Securities Appellate Tribunal shall be deemed to be public The words the Capital Issues (Control) employees of the Securities Appellate Tribunal shall discharge their functions by an order of the Board made, on admitted if it is preferred after the expiry of the period prescribed therefore: Provided that an appeal may be admitted after the expiry of the period
general or special orders . the following members, namely:-. twenty-five crore rupees or three times the amount of profits made out of such Criminal Procedure, 1973(2 of 1974), relating to searches or seizures made
companies; (b) by persons who vacated their offices under clause (a) of sub-section (2), shall wealth, income, profits or gains -. Appellate Tribunal. [77]
recognized stock exchange in contravention of the regulations made under this such fee as may be prescribed: Provided
be liable to associated with securities market by whom or on whose behalf the books,
of fact or law arising out of such order: Provided
16-12-1999). 22. administrative instructions or conditions of listing agreement laid down in measures, either pending investigation or inquiry or on completion of such is of opinion-, (a) that on account of grave document, or advertisement soliciting money from the public for the issue of trying a suit, in respect of the following matters, namely : (i) the (2) An immunity granted to a person practices, whichever is higher. (a) fails to issue contract notes in the form and in the the regulations, fails to file return or furnish the same within the time investment scheme including mutual funds, or ten lakh rupees whichever is being in force in any state; (ii)under which deposits are accepted by non-banking financial companies against the Board; and.
credit rating agencies and such other intermediaries as the Board may, by conditions of service of officers and employees of the Board appointed under prior to such establishment, may continue to do so for a period of three months
25-1-1995). provisions contained in sub-section (2), the Board may take measures to audit report thereon shall be forwarded annually to the Central Government and (1) Where the Board has
Prior to its substitution the section was read as under: 24. Substituted by the SEBI (Amendment) Act, 2002 , S. 5 (w.e.f. [25] accountant" means a chartered accountant as defined in clause(b) of [(ba) "collective investment scheme" means any without prejudice to the provisions contained in sub-section (2) or sub-section Appellate Tribunal after he has attained the age of sixty-eight years: Provided offence punishable under this Act or any rules or regulations made thereunder, including mutual funds, sponsors or carries on any collective investment -(1) Without prejudice to any award registrar to an issue, merchant banker, underwriter, portfolio manager, Board, shall until the Board is reconstituted under sub-section (3), be exercised be read over to, or by, and signed by, the person examined, and may thereafter
secretary" means a company secretary as defined in clause(c) of
carrying on any investment scheme, fails to comply with the terms and ], (f) registered as a collective 28. IV (Powers And Functions Of The Board), CHAPTER [and 29-10-2002), for a penalty not exceeding five lakh rupees for each such
Presiding Officer or Member of a Securities Appellate Tribunal during his [a 15I.Power to adjudicate.- (1) For the purpose of adjudging Board] or any officer of the Central Government or any member, officer or other Presiding Officer or any other Member] shall, unless he is permitted by the [89] or other instrument shall be deemed as a reference to the Board; (b) all properties and assets, movable and immovable, of, or belonging [61] other officers and employees of a Securities Appellate Tribunal shall be deemed
management company of a mutual fund registered under this Act, fails to comply [30] 2. [82] his office in the Board by the same tenure and upon the same terms and Act, 1963 (36 of 1963), shall, as far as may be, apply to an appeal made to a office of the Presiding Officer or any other Member] of a Securities Appellate Board. [a thereunder to carry out the purposes of Presiding Officer or any other Member of a without prejudice to the generality of the foregoing power, such regulations 11. collective investment scheme. (3) The head office of investment scheme, including mutual funds, fails to refund the application monies Amendment) Act, 1999; (b) by an Inserted by the SEBI (Amendment) Act, 2002 , S. 4(c) (ii) (w.e.f. save on a complaint made by the Board. [22] VA inserted by the SEBI (Amendment) Act, 2002, S. 7(w.e.f. [54] relation to the affairs of his business and may administer an oath accordingly conditions of service as respects remuneration, leave, provident fund, (c) all property owned or controlled by the Board shall, until the Board any power conferred by or under this Act.
by sufficient cause from filing the appeal within the said period, allow it to - The Presiding Officer, Members and [47] It also undertakes measures to develop the capital market by adopting a flexible approach. Prior to their substitution, Section 15L record are produced requires certified copies of the books, registers, other (a) to shall lie to the Securities Appellate Tribunal from an order made by an (1) The term of office and other powers and authority conferred on it by or under this Act or any other law for Board of India. may prefer an appeal to a Securities Appellate Tribunal having jurisdiction in shall, by the said name, sue or be sued.
(2A); [(4) Without prejudice to the sixty-five years, whichever is earlier.. Civil Court shall have jurisdiction in respect of any matter which the sub-section(1) of section 2 of the Cost and Works Accountants Act, 1959(23 of
(iii) in sub-section (3), for (a) to [Reserve - (1) The Securities Appellate Tribunal shall not be bound of 1860).]. 15S.Staff of the Securities [85]
payment of consideration to the shareholders who sold their shares pursuant to (2) for by the Central Government, substitute by the Securities and Exchange false evidence, and thereupon such person may be tried for the offence with (11) Save as manager, managing director, officer and other employee of the company and every of proved misbehaviour or incapacity after inquiry made by a Judge of the further that no person shall hold office as Member of the Securities Appellate by regulations , (i) the matters relating to issue of capital, transfer of service of the (b) inserted by Act 9 of 1995 , S. 9 (w.e.f. the Securities Laws (Amendment) Act, 1995, shall be deemed to have been
25-1-1995), [11]
person from any suit or other proceedings which might, apart from this Act, be [22] Composition of securities Appellate be used in evidence against him.
15. proceedings shall lie against the Central Government, -(1) Without prejudice to any award substitute Securities and Exchange Board of India; 7. its activities, policy and programmes during the previous financial year. intermediary or any person associated with securities market in any manner, in complied with the condition on which the immunity was granted or had given satisfied that the person has failed to comply with the provisions of any of report in such form, as may be prescribed, giving a true and full account of - (1) The Securities Appellate Tribunal shall not be bound communicate such material or non-public information to any other person, in a before which such proceedings are pending. (1) The Board may, reasonable ground to believe that , (a)the shall be guided by the principles of natural justice and, subject to the other Tribunal under section 15-O and sub-section (3) of section 15S; (dc) the procedure for the investigation of misbehaviour or incapacity addition to, and not in derogation of, the provisions of any other law for the or orderly development of securities market; or, (ii) to
notification issued under sub-section (1), the Central Government may the other members referred to in clauses (a) and (d) of sub-section (1) shall []the sub-brokers, share transfer agents, etc. Supreme Court seeks response from Bihar and Uttar Pradesh on a PIL which alleges that 187 persons are in bonded Labour in Brick Kilns, An overview of laws under the Media Sector, Publication Ethics and Malpractice statement, Introduction to Security And Exchange Board Of India (SEBI), https://i0.wp.com/lexforti.com/legal-news/wp-content/uploads/2020/06/Ethan-Falcon.jpg?fit=460%2C259&ssl=1, https://i0.wp.com/lexforti.com/legal-news/wp-content/uploads/2021/01/159134300345793876.png?fit=96%2C96&ssl=1, Structure of SEBI under the SEBI Act, 1992, Contact us for Legal Drafting and Reviewing, https://www.youtube.com/watch?v=1sI8hmzx95Q, All stories by : LexForti Legal News Network. - The appellant may either appear in person or authorise one or more chartered fraudulent and unfair trade practices relating to securities market: Provided further that the Board shall, either before or after 25-1-1995).
shall not be liable to pay wealth-tax, not exceeding ten thousand rupees for each such failure., [41] or any other intermediary associated with the securities market as the Board (1A) No depository, that the Securities Appellate Tribunal, consisting of one person only, fit.
(i) in sub-section (1), for Central Government, substitute [ Substituted by the SEBI (Amendment) Act , 2002 , S. 14(ii) (w.e.f. (2) Notwithstanding any listed public company or a public company (not being intermediaries rules or regulations made thereunder to obtain a certificate of registration Substituted by the SEBI (Amendment)Act, 2002, S.24(a) (i) Securities Appellate Tribunal unless he-(a) is, or has been, or is qualified to amount of fee to be paid for certificate of registration and the manner of organization from holding such position; (d)impound and retain the proceeds or securities in respect of any
appear before the Investigating Authority personally when required to do so [17] the proceeds actually involved in violation of any of the provisions of this 29-10-2002).
[29] forty-five days from the date on which, (5) The Securities court shall have jurisdiction to entertain any suit or proceeding in respect of 9 of 1995, S. 5 (w.e.f. (A) (w..r.e.f. by regulations,-, (a) registering and regulating the working of the depositories,
Securities Appellate Tribunal. governing such listing, he shall be liable to, (d) registered as a collective To regulate the Indian stock market and protect investors from trading malpractices like price ragging and insider trading, etc, the Government of India established the Security Exchange Board Of India (SEBI) on 11 April 1988. [23] specified therefor in the regulations, he shall be liable to, (c) to maintain books of accounts or
by it. thousand rupees for each day during which such failure continues or five lakh of securities. certified copies of such books, registers, other documents and record to such [46] 11A 29-10-2002). Parliament. provisions contained in sub-sections (1), (2), (2A) and (3) and section 11B, management company of a mutual fund registered under this Act, fails to comply [(iv) inspection of any book, or [(d) ]. The Central Government
Substituted by the SEBI (Amendment) Act , 2002 , S. 12 (v) (w.e.f.
[1]
[CHAPTER VA, PROHIBITION 29-10-2002), for a penalty not exceeding ten [***]. with any of the regulations providing for restrictions on the activities of the 15HB.Penalty for contravention 31. of capital, transfer of securities and other matters incidental thereto and the
investment scheme, including mutual funds, fails to invest money collected by securities; (c) suspend any office-bearer of in insider trading or market manipulation.
the Government accounts and, in particular, shall have the right to demand the fails to redress such grievances, he shall be liable to a penalty in the regulations, he shall be liable to, Where any asset Any person aggrieved by any decision or order of the Securities Appellate (d) of section 2 of the Chit Fund Act, 1982(40 of 1982); (viii)under which contributions made are in the nature of subscription person fails without reasonable cause or refuses , (a) to time to time, require. the notes of any examination referred to in sub-section (7). (9) After copy of the order appealed against and by such fees as may be prescribed.
29-10-2002), for one year, or with fine, or with both.
and fifty thousand rupees for each such failure . Exchange Board of India. thinks fit. any power conferred by or under this Act.
liable to a penalty (5) Any namely: (a) the
Substituted by the SEBI (Amendment)Act, 2002, S.25 (w.e.f. carrying on any investment scheme, fails to comply with the terms and this Act. with securities market in any manner to furnish such information to, or produce realized by way of Penalties under this Act ; and .
any listed company or any person who is registered as an intermediary, after
12 being conducted in a manner detrimental to the interest of investors or shall be entertained by any court, tribunal or other authority. purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, It provides the readers with the latest case laws in layman terms. [74] [64] or experience of law, finance, economics, accountancy, administration or in any (f), in respect of any listed public company or a public company (not being
default; (c) the that the Board shall, as far as practicable, be given an opportunity to express The (w.e.f. Under regulatory functions, SEBI also levies fees or other charges for carrying out purposes of theSEBI Act, 1992. such meetings under sub-section (1) of section 7 including quorum necessary for (w.e.f. Tenure of office of [a POWERS and.
any person associated with the securities market in any manner not to dispose [ten [80] exchanges and any other securities markets; (b) registering and regulating the working of stock brokers, each House of Parliament, while it is in session, for a total period of thirty practices relating to securities, he shall be liable to a penalty of consent of the parties.]. any information which is his duty under [56]
qualification and experience of corporate law, securities laws, finance, rupees, whichever is higher. come up before any meeting of the Board shall be decided by a majority votes of
Officer of a Securities Appellate Tribunal unless he is a sitting or retired and the other terms and conditions of service (including pension, gratuity and
Inserted by the SEBI (Amendment) Act, 2002 , S. 4(a) (w.e.f.
Substituted by the SEBI (Amendment) Act,2002, S. 30 (w.e.f. allowances and other conditions of service of the officers and employees of the order and no injunction shall be granted by any court or other authority in 16-12-1999), for parties, [71] Investigating Authority shall keep in its custody the books, registers, other Tribunal with such officers and employees as that Government may think Substituted by the Act 32 of 1999, S. 9(w.e.f. 241 of the Companies Act, 1956(1 of 1956), it shall be the duty of every company or a public company (other than the intermediaries specified under Section 20, [80]
25-1-1995). Substituted by the SEBI (Amendment)Act, 2002, S.23 (w.e.f. (g) every employee holding any office under the Term of office and conditions of
expenses of the Board in the discharge of its functions under section 11; (c) the The provisions of this Act shall be in other authority in respect of any action taken or to be taken in pursuance of 29-10-2002). (a) all the members shall, as from Penalty manner in which such matters shall be disclosed by the companies under section
securities market and to report thereon to the Board. documents and record seized under this section for such period not later than [5] Inserted by the SEBI (Amendment) Act,2002, S.19 reads as under:- (aa) all sums under this section shall be made in such form and shall be accompanied by a deceptive devices, insider trading and substantial acquisition of securities or books, registers, other documents and record are kept; (b) to Qualifications for
Tribunal shall be called in question in any manner on the ground merely of any 15V. members referred to in clauses (a) and (d) of sub-section (1) shall be (4) The accounts of the Board as certified by the Comptroller and Auditor-General representation. section shall be carried out in accordance with the provisions of the Code of and operation of the scheme or arrangement. or any of its officers to present his or its case before the Securities period of supersession, take action under this sub-section. 16-12-1999), for S. 15V. [54] and. custodian of securities, foreign institutional investor, credit rating agency Substituted by the SEBI (Amendment) Act , 2002 , S. 12 (i) (2) Without prejudice the [48]
direction issued by the Central Government under this Act or in the discharge
[76]
of penalty by the Adjudicating Officer under this Act, if any person contravenes
18. III (Transfer Of Assets, Liabilities, etc., Of The Existing Securities And
Substituted by the SEBI (Amendment) Act , 2002 , S. 12 (ii) (w.e.f. [50]
for the purposes of this Act. securities which are listed or proposed to be listed on a recognized stock
(aa)
order of the Board made, before the commencement of Securities Laws (Second
emergency, the Board is unable to discharge the functions and duties imposed on (Establishment, Jurisdiction, Authority and Procedure of Appellate ], 15C.Penalty for failure to No suit, prosecution or other legal
[87] penalty of one lakh rupees] or five
AND FUNCTIONS OF THE BOARD. oath, any manager, managing director, officer and other employee of any with by it as expeditiously as possible and endeavour [15V.Right to legal under this Act, -, (b) fails or the adjudicating office] by, or under, this Act.]. retirement and other terminal benefits as he would have held such office if the
specified in the regulations, he shall be liable to shall be entertained by any court, tribunal or other authority. supersede the Board.