← Back to Directory
The Securities and Exchange Board of India Act, 1992
The Securities and Exchange Board of India Act, 1992
Sections
1. Short title, extent and commencement.
Section 12. Definitions.
Section 23. Establishment and incorporation of Board.
Section 34. Management of the Board.
Section 45. Term of office and conditions of service of Chairman and members of the Board.
Section 56. Removal of member from office.
Section 67. Meetings.
Section 78. Vacancies, etc., not to invalidate proceedings of Board.
Section 89. Officers and employees of the Board.
Section 910. Transfer of assets, liabilities, etc., of existing Securities and Exchange Board to the Board.
Section 1011. Functions of Board.
Section 1111B. Power to issue directions [and levy penalty]
Section 11B11D. Cease and desist proceedings.
Section 11D12. Registration of stock-brokers, sub-brokers, share transfer agents, etc.
Section 1212A. Prohibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control.
Section 12A13. Grants by the Central Government.
Section 1314. Fund.
Section 1415. Accounts and audit.
Section 1515A. Penalty for failure to furnish information, return, etc.
Section 15A15B. Penalty for failure by any person to enter into agreement with clients.
Section 15B15D. Penalty for certain defaults in case of mutual funds.
Section 15D15E. Penalty for failure to observe rules and regulations by an asset management company.
Section 15E15EB. Penalty for default in case of investment adviser and research analyst.
Section 15EB15F. Penalty for default in case of stock brokers.
Section 15F15G. Penalty for insider trading.
Section 15G15H. Penalty for non-disclosure of acquisition of shares and takeovers.
Section 15H15HB. Penalty for contravention where no separate penalty has been provided.
Section 15HB15I. Power to adjudicate.
Section 15I15K. Establishment of Securities Appellate Tribunals.
Section 15K15M. Qualification for appointment as Presiding Officer or Member of Securities Appellate Tribunal.
Section 15M15O. Salary and allowances and other terms and conditions of service of Presiding Officers.
Section 15O15P. Filling up of vacancies.
Section 15P15Q. Resignation and removal.
Section 15Q15R. Orders constituting Appellate Tribunal to be final and not to invalidate its proceedings.
Section 15R15S. Staff of the Securities Appellate Tribunal.
Section 15S15T. Appeal to the Securities Appellate Tribunal.
Section 15T15U. Procedure and powers of the Securities Appellate Tribunal.
Section 15U15W. Limitation.
Section 15W15Y. Civil Court not to have jurisdiction.
Section 15Y16. Power of Central Government to issue directions.
Section 1617. Power of Central Government to supersede the Board.
Section 1718. Returns and reports.
Section 1819. Delegation.
Section 1920. Appeals.
Section 2021. Savings.
Section 2122. Members, officers and employees of the Board to be public servants.
Section 2223. Protection of action taken in good faith.
Section 2324B. Power to grant immunity.
Section 24B25. Exemption from tax on wealth and income.
Section 2526. Cognizance of offences by Courts.
Section 2626A. Establishment of Special Courts.
Section 26A26B. Offences triable by Special Courts.
Section 26B26C. Appeal and revision.
Section 26C26D. Application of Code to proceedings before Special Court.
Section 26D26E. Transitional provisions.
Section 26E28. Power to exempt.
Section 2829. Power to make rules.
Section 2930. Power to make regulations.
Section 3031. Rules and regulations to be laid before Parliament.
Section 3132. Application of other laws not barred.
Section 3233. Amendment of certain enactments.
Section 3334. Power to remove difficulties.
Section 3435. Repeal and saving.
Section 3529A. Power to delegate
Section 29A
securities-and-exchange-board-of-india-act-1992.json
•
64 Sections
•
India (Central)
{
"id": 13075,
"slug": "securities-and-exchange-board-of-india-act-1992",
"title": "The Securities and Exchange Board of India Act, 1992",
"short_title": "The Securities and Exchange Board of India Act, 1992",
"act_number": "(15 of 1992)",
"act_year": 1992,
"act_type": "CENTRAL",
"location": "India (Central)",
"law_status": "unknown",
"enactment_date": "1992-04-04",
"description": "The Securities and Exchange Board of India Act, 1992",
"preamble": "",
"section_label": "Section",
"sections": [
{
"number": "1",
"title": "1. Short title, extent and commencement.",
"chapter": null,
"content": "Object & Reasons▼\nStatement of Objects and Reasons.\nAmendment Act 9 of 1995-Statement of Objects and Reasons.\n(a) regulate the companies on matters relating to issue of capital, transfer of securities and other matters incidental thereto;\n(b) bring intermediaries like depositories, custodians for securities and some other categories of persons associated with the securities market like foreign institutional investors, credit rating agencies and venture capital funds which play a major role in the development of the capital market which were outside the purview of the Board;\n(c) impose monetary penalties also in addition to or other than penalties of suspension or cancellation of certificate of registration which may not be appropriate in all cases of default;\n(d) provide for appointment of adjudicating officer for imposition of penalties and for establishment of Securities Appellate Tribunal to hear appeals from the orders or decisions of adjudicating officer;\n(e) issue regulations without the approval of the Central Government;\n(f) allow directors of companies to be appointed as members of the Board so that the Board benefits from the expertise of people familiar with the capital market;\n(g) facilitate the issuance and trading of options in securities;\n(h) allow the existing stock exchanges to establish additional trading floors outside their area of operation;\n(i) make violation of the listing agreement as an offence.\nAmendment Act 31 of 1999-Statement of Objects and Reasons.\n(i) A view was expressed before the Standing Committee that since under section 30 of the Indian Contract Act, 1872, the contracts which are cash settled are classified as wagers and trading in wagers is null and void, the index future which are always cash settled would also be classified as wagers under the said Act. Due to this, no proceedings to enforce an index future contracts either by an exchange against a defaulting broker or client against his broker would stand the legal scrutiny before the Court of law. The Committee was, therefore, of the view that there was no harm in having an overriding provision as a matter of abundant caution. They, therefore, suggested the incorporation of the following provision in the Bill, namely:-\n(ii) The Committee was convinced that stock exchanges which are presently working would be better equipped to undertake trading in derivatives in a sophisticated environment. They further observed that most of these exchanges have already been modernised having state-of-the-art technology, the facility of depository and clearance house and moreover, since they are in a better position to handle the risk profiles of the retails investors, institutional investors and corporate bodies, it would be prudent to allow trading in derivatives by such exchanges only. The Committee had, therefore, proposed that the following Explanation may be added in the Bill, namely:-\n(iii) The Committee was of the opinion that there was a need to define collective investment schemes in the Act. They had recommended that a definition of collective investment scheme suitably worded in consonance with the definition recommended by the Dave Committee should be included in the Act.\nAmendment Act 32 of 1999-Statement of Objects and Reasons.\nAmendment Act 59 of 2002-Statement of Objects and Reasons.\n(a) increasing the number of members of the SEBI from six (including Chairman) to nine (including Chairman);\n(b) conferring power upon the Board for,\n(i) calling for information and record from any bank or other authority or Board or corporation established or constituted by or under any Central, State or Provincial Act in respect of any transaction in securities which are under investigation or inquiry by the Board;\n(ii) passing an order for reasons to be recorded in writing, in the interest of investors or securities market, either pending investigation or enquiry or on completion of such investigation or inquiry for taking any of the following measures, namely, to\n(A) suspend the trading of any security in a recognised stock exchange; (B) restrain persons from accessing the securities market and prohibit any person associated with securities market to buy, sell or deal in securities; (C) suspend any office-bearer of any stock exchange or self-regulatory organisation from holding such position; (D) impound and retain the proceeds or securities in respect of any transaction which is under investigation; (E) attach, after passing of an order on an application made for approval by the Judicial Magistrate of the first class having jurisdiction, for a period not exceeding one month, one or more bank account or accounts of any intermediary or any person associated with the securities market in any manner involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder; (F) direct any intermediary or any person associated with the securities market in any manner not to dispose of or alienate an asset forming part of any transaction which is under investigation; (iii) regulating or prohibiting for the protection of investors, issue of prospectus, offer document or advertisement soliciting money for issue of securities; (iv) directing any person to investigate the affairs of intermediary or person associated with the securities market and to search and seize books, registers, other documents and records considered necessary for the purposes of the investigation, with the prior approval of a Magistrate of the first class; (v) passing an order requiring any person who has violated or is likely to violate, any provision of the SEBI Act or any rules or regulations made thereunder to cease and desist for committing and causing such violation; (c) prohibiting manipulative and deceptive devices, insider trading, fraudulent and manipulative trade practices, market manipulation and substantial acquisition of securities and control; (d) crediting sums realised by way of penalties to the Consolidated Fund of India; (e) amending the composition of the Securities Appellate Tribunal from one person to three persons; (f) changing the qualifications for appointment as Presiding Officer and members of the Securities Appellate Tribunal; (g) composition of certain offences by the Securities Appellate Tribunal; (h) conferring power upon the Central Government to grant immunity; (i) appeal to the Supreme Court from the orders of the Securities Appellate Tribunal; (j) enhancing the penalties specified in the SEBI Act.\n(B) restrain persons from accessing the securities market and prohibit any person associated with securities market to buy, sell or deal in securities;\n(C) suspend any office-bearer of any stock exchange or self-regulatory organisation from holding such position;\n(D) impound and retain the proceeds or securities in respect of any transaction which is under investigation;\n(E) attach, after passing of an order on an application made for approval by the Judicial Magistrate of the first class having jurisdiction, for a period not exceeding one month, one or more bank account or accounts of any intermediary or any person associated with the securities market in any manner involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder;\n(F) direct any intermediary or any person associated with the securities market in any manner not to dispose of or alienate an asset forming part of any transaction which is under investigation;\n(iii) regulating or prohibiting for the protection of investors, issue of prospectus, offer document or advertisement soliciting money for issue of securities;\n(iv) directing any person to investigate the affairs of intermediary or person associated with the securities market and to search and seize books, registers, other documents and records considered necessary for the purposes of the investigation, with the prior approval of a Magistrate of the first class;\n(v) passing an order requiring any person who has violated or is likely to violate, any provision of the SEBI Act or any rules or regulations made thereunder to cease and desist for committing and causing such violation;\n(c) prohibiting manipulative and deceptive devices, insider trading, fraudulent and manipulative trade practices, market manipulation and substantial acquisition of securities and control;\n(d) crediting sums realised by way of penalties to the Consolidated Fund of India;\n(e) amending the composition of the Securities Appellate Tribunal from one person to three persons;\n(f) changing the qualifications for appointment as Presiding Officer and members of the Securities Appellate Tribunal;\n(g) composition of certain offences by the Securities Appellate Tribunal;\n(h) conferring power upon the Central Government to grant immunity;\n(i) appeal to the Supreme Court from the orders of the Securities Appellate Tribunal;\n(j) enhancing the penalties specified in the SEBI Act.",
"footnote": "",
"is_definition": false,
"sort_order": 0
},
{
"number": "2",
"title": "2. Definitions.",
"chapter": null,
"content": "(a) \"Board\" means the Securities and Exchange Board of India established under section 3;\n(b) \"Chairman\" means the Chairman of the Board;\n[(ba) \"collective investment scheme\" means any scheme or arrangement which satisfies the conditions specified in section 11-AA;]\n(c) \"existing Securities and Exchange Board\" means the Securities and Exchange Board of India constituted under the Resolution of the Government of India in the Department of Economic Affairs No. 1 (44) SE/86, dated the 12th day of April, 1988;\n(d) \"Fund\" means the Fund constituted under section 14;\n(e) \"member\" means a member of the Board and includes the Chairman;\n(f) \"notification\" means a notification published in the Official Gazette;\n(g) \"prescribed\" means prescribed by rules made under this Act;\n(h) \"regulations\" means the regulations made by the Board under this Act;\n[(ha) \"Reserve Bank\" means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934);]\n(i) \"securities\" has the meaning assigned to it in section 2 of the Securities Contracts (Regulation) Act, 1956.\nChapter II\nEstablishment Of The Securities And Exchange Board Of India",
"footnote": "",
"is_definition": true,
"sort_order": 1
},
{
"number": "3",
"title": "3. Establishment and incorporation of Board.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 2
},
{
"number": "4",
"title": "4. Management of the Board.",
"chapter": null,
"content": "(a) a Chairman;\n(b) two members from amongst the officials of the [Ministry]\n(c) one member from amongst the officials of [the Reserve Bank] ;\n[(d) five other members of whom at least three shall be the whole-time members,]",
"footnote": "",
"is_definition": false,
"sort_order": 3
},
{
"number": "5",
"title": "5. Term of office and conditions of service of Chairman and members of the Board.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 4
},
{
"number": "6",
"title": "6. Removal of member from office.",
"chapter": null,
"content": "(a) is, or at any time has been, adjudicated as insolvent;\n(b) is of unsound mind and stands so declared by a competent Court;\n(c) has been convicted of an offence which, in the opinion of the Central Government, involves a moral turpitude;\n[* * * *]\n(e) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest:",
"footnote": "",
"is_definition": false,
"sort_order": 5
},
{
"number": "7",
"title": "7. Meetings.",
"chapter": null,
"content": "[7A. Member not to participate in meetings in certain cases.",
"footnote": "",
"is_definition": false,
"sort_order": 6
},
{
"number": "8",
"title": "8. Vacancies, etc., not to invalidate proceedings of Board.",
"chapter": null,
"content": "(a) any vacancy in, or any defect in the constitution of, the Board; or\n(b) any defect in the appointment of a person acting as a member of the Board; or\n(c) any irregularity in the procedure of the Board not affecting the merits of the case.",
"footnote": "",
"is_definition": false,
"sort_order": 7
},
{
"number": "9",
"title": "9. Officers and employees of the Board.",
"chapter": null,
"content": "Chapter III\nTransfer Of Assets, Liabilities, Etc., Of The Existing Securities And Exchange Board To The Board",
"footnote": "",
"is_definition": false,
"sort_order": 8
},
{
"number": "10",
"title": "10. Transfer of assets, liabilities, etc., of existing Securities and Exchange Board to the Board.",
"chapter": null,
"content": "(a) any reference to the existing Securities and Exchange Board in any law other than this Act or in any contract or other instrument shall be deemed as a reference to the Board;\n(b) all properties and assets, movable and immovable, of, or belonging to, the existing Securities and Exchange Board, shall vest in the Board;\n(c) all rights and liabilities of the existing Securities and Exchange Board shall be transferred to, and be the rights and liabilities of, the Board;\n(d) without prejudice to the provisions of clause (c), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the existing Securities and Exchange Board immediately before that date, for or in connection with the purpose of the said existing Board shall be deemed to have been incurred, entered into or engaged to be done by, with for, the Board;\n(e) all sums of money due to the existing Securities and Exchange Board immediately before that date shall be deemed to be due to the Board;\n(f) all suits and other legal proceedings instituted or which could have been instituted by or against the existing Securities and Exchange Board immediately before that date may be continued or may be instituted by or against the Board; and\n(g) every employee holding any office under the existing Securities and Exchange Board immediately before that date shall hold his office in the Board by the same tenure and upon the same terms and conditions of service as respects remuneration, leave, provident fund, retirement and other terminal benefits as he would have held such office if the Board had not been established and shall continue to do so as an employee of the Board or until the expiry of the period of six months from that date if such employee opts not to be the employee of the Board within such period.\nChapter IV\nPowers And Functions Of The Board",
"footnote": "",
"is_definition": false,
"sort_order": 9
},
{
"number": "11",
"title": "11. Functions of Board.",
"chapter": null,
"content": "(a) regulating the business in stock exchanges and any other securities markets;\n(b) registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner;\n[(ba) registering and regulating the working of the]\n(c) registering and regulating the working of [venture capital funds and collective investment schemes]\n(d) promoting and regulating self-regulatory organisations;\n(e) prohibiting fraudulent and unfair trade practices relating to securities markets;\n(f) promoting investors' education and training of intermediaries of securities markets;\n(g) prohibiting insider trading in securities;\n(h) regulating substantial acquisition of shares and take-over of companies;\n(i) calling for information from, undertaking inspection, conducting inquiries and audits of the [stock exchanges, mutual funds, other persons associated with the securities market]\n[(ia) calling for information and records from any person including any bank or any other authority or board or corporation established or constituted by or under any Central or State Act which, in the opinion of the Board, shall be relevant to any investigation or inquiry by the Board in respect of any transaction in securities]\n[(ib) calling for information from, or furnishing information to, other authorities, whether in India or outside India, having functions similar to those of the Board, in the matters relating to the prevention or detection of violations in respect of securities laws, subject to the provisions of other laws for the time being in force in this regard:\nProvided that the Board, for the purpose of furnishing any information to any authority outside India, may enter into an arrangement or agreement or understanding with such authority with the prior approval of the Central Government]\n(j) performing such functions and exercising such powers under the provisions of [* * *] the Securities Contracts (Regulation) Act, 1956, as may be delegated to it by the Central Government;\n(k) levying fees or other charges for carrying out the purposes of this section;\n(l) conducting research for the above purposes;\n[(la) calling from or furnishing to any such agencies, as may be specified by the Board, such information as may be considered necessary by it for the efficient discharge of its functions;]\n(m) performing such other functions as may be prescribed.\n(i) the discovery and production of books of account and other documents, at such place and such time as may be specified by the Board;\n(ii) summoning and enforcing the attendance of persons and examining them on oath;\n(iii) inspection of any books, registers and other documents of any person referred to in section 12, at any place;]\n(iv) inspection of any book, or register, or other document or record of the company referred to in sub-section (2-A);\n(v) issuing commissions for the examination of witnesses or documents.\n(a) suspend the trading of any security in a recognised stock exchange;\n(b) restrain persons from accessing the securities market and prohibit any person associated with securities market to buy, sell or deal in securities;\n(c) suspend any office-bearer of any stock exchange or self-regulatory organisation from holding such position;\n(d) impound and retain the proceeds or securities in respect of any transaction which is under investigation;\n[(e) attach, for a period not exceeding ninety days, bank accounts or other property of any intermediary or any person associated with the securities market in any manner involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder:\n(f) direct any intermediary or any person associated with the securities market in any manner not to dispose of or alienate an asset forming part of any transaction which is under investigation:\n[11A. Board to regulate or prohibit issue of prospectus, offer document or advertisement soliciting money for issue of securities.\n(a) specify, by regulations-\n(i) the matters relating to issue of capital, transfer of securities and other matters incidental thereto; and\n(ii) the manner in which such matters shall be disclosed by the companies;\n(b) by general or special orders-\n(i) prohibit any company from issuing prospectus, any offer document, or advertisement soliciting money from the public for the issue of securities;\n(ii) specify the conditions subject to which the prospectus, such offer document or advertisement, if not prohibited, may be issued.\n[11AA. Collective investment scheme.\n(i) the contributions, or payments made by the investors, by whatever name called, are pooled and utilized for the purposes of the scheme or arrangement;\n(ii) the contributions, or payments made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable, from such scheme or arrangement;\n(iii) the property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors;\n(iv) the investors do not have day-to-day control over the management and operation of the scheme or arrangement.\n(i) made or offered by a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912) or a society being a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State;\n(ii) under which deposits are accepted by non-banking financial companies as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);\n(iii) being a contract of insurance to which the Insurance Act, 1938 (4 of 1938), applies;\n(iv) providing for any scheme, pension scheme or the insurance scheme framed under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952);\n(v) under which deposits are accepted under section 58-A of the Companies Act, 1956 (1 of 1956);\n(vi) under which deposits are accepted by a company declared as a Nidhi or a Mutual Benefit Society under section 620-A of the Companies Act, 1956 (1 of 1956);\n(vii) falling within the meaning of chit business as defined in clause (e) of section 2 of the Chit Funds Act, 1982 (40 of 1982);\n(viii) under which contributions made are in the nature of subscription to a mutual fund;\n[(ix) such other scheme or arrangement which the Central Government may, in consultation with the Board, notify.]",
"footnote": "",
"is_definition": false,
"sort_order": 10
},
{
"number": "11B",
"title": "11B. Power to issue directions [and levy penalty]",
"chapter": null,
"content": "(i) in the interest of investors, or orderly development of securities market; or\n(ii) to prevent the affairs of any intermediary or other persons referred to in section 12 being conducted in a manner detrimental to the interests of investors of securities market; or\n(iii) to secure the proper management of any such intermediary or person, it may issue such directions-\n(a) to any person or class of persons referred to in section 12, or associated with the securities market; or\n(b) to any company in respect of matters specified in section 11-A, as may be appropriate in the interests of investors in securities and the securities market.\n[11C. Investigation.\n(a) the transactions in securities are being dealt with in a manner detrimental to the investors or the securities market; or\n(b) any intermediary or any person associated with the securities market has violated any of the provisions of this Act or the rules or the regulations made or directions issued by the Board thereunder, it may, at any time by order in writing, direct any person (hereafter in this section referred to as the Investigating Authority) specified in the order to investigate the affairs of such intermediary or persons associated with the securities market and to report thereon to the Board.\n(a) to produce to the Investigating Authority or any person authorised by him in this behalf any book, register, other document and record which is his duty under sub-section (2) or sub-section (3) to produce; or\n(b) to furnish any information which is his duty under sub-section (3) to furnish; or\n(c) to appear before the Investigating Authority personally when required to do so under sub-section (5) or to answer any question which is put to him by the Investigating Authority in pursuance of that sub-section; or\n(d) to sign the notes of any examination referred to in sub-section (7), he shall be punishable with imprisonment for a term which may extend to one year, or with fine, which may extend to one crore rupees, or with both, and also with a further fine which may extend to five lakh rupees for every day after the first during which the failure or refusal continues.\n(a) has omitted or failed to provide the information or produce documents as required in the notice; or\n(b) would not provide the information or produce documents which shall be useful for, or relevant to, the investigation; or\n(c) would destroy, mutilate, alter, falsify or secrete the information or documents useful for, or relevant to, the investigation,\n(i) enter and search, with such assistance, as may be required, the building, place, vessel, vehicle or aircraft where such information or documents are expected or believed to be kept;\n(ii) break open the lock of any door, box, locker, safe almirah or other receptacle for exercising the powers conferred by sub-clause (i), where the keys thereof are not available;\n(iii) search any person who has got out of, or is about to get into, or is in, the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that such person has secreted about his person any such books of account or other documents;\n(iv) require any person who is found to be in possession or control of any books of account or other documents, maintained in the form of electronic record, to provide the authorised officer the necessary facility to inspect such books of account or other documents.\n(v) seize any such books of account or other documents found as a result of such search;\n(vi) place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom;\n(vii) record on oath the statement of any person who is found to be in possession or in control of the information or documents referred to in sub-clause (i), (iii) and (iv).]\n(a) to enter, with such assistance, as may be required, the place or places where such books, registers, other documents and record are kept;\n(b) to search that place or those places in the manner specified in the order; and\n(c) to seize books, registers, other documents and record, it considers necessary for the purposes of the investigation:",
"footnote": "",
"is_definition": false,
"sort_order": 11
},
{
"number": "11D",
"title": "11D. Cease and desist proceedings.",
"chapter": null,
"content": "Chapter V\nRegistration Certificate",
"footnote": "",
"is_definition": false,
"sort_order": 12
},
{
"number": "12",
"title": "12. Registration of stock-brokers, sub-brokers, share transfer agents, etc.",
"chapter": null,
"content": "[Explanation.\n[Chapter V-A]\nProhibition Of Manipulative And Deceptive Devices, Insider Trading And Substantial Acquisition Of Securities Or Control",
"footnote": "",
"is_definition": false,
"sort_order": 13
},
{
"number": "12A",
"title": "12A. Prohibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control.",
"chapter": null,
"content": "(a) use or employ, in connection with the issue, purchase or sale of any securities listed or proposed to be listed on a recognised stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of this Act or the rules or the regulations made thereunder;\n(b) employ any device, scheme or artifice to defraud in connection with issue or dealing in securities which are listed or proposed to be listed on a recognised stock exchange;\n(c) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person, in connection with the issue, dealing in securities which are listed or proposed to be listed on a recognised stock exchange, in contravention of the provisions of this Act or the rules or the regulations made thereunder;\n(d) engage in insider trading;\n(e) deal in securities while in possession of material or non-public information or communicate such material or non-public information to any other person, in a manner which is in contravention of the provisions of this Act or the rules or the regulations made thereunder;\n(f) acquire control of any company or securities more than the percentage of equity share capital of a company whose securities are listed or proposed to be listed on a recognised stock exchange in contravention of the regulations made under this Act.\nChapter VI\nFinance, Accounts And Audit",
"footnote": "",
"is_definition": false,
"sort_order": 14
},
{
"number": "13",
"title": "13. Grants by the Central Government.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 15
},
{
"number": "14",
"title": "14. Fund.",
"chapter": null,
"content": "(a) all grants, fees and charges received by the Board under this Act; [*]\n[* * *]\n(b) all sums received by the Board from such other sources as may be decided upon by the Central Government.\n(a) the salaries, allowances and other remuneration of the members, officers and other employees of the Board;\n(b) the expenses of the Board in the discharge of its functions under section 11;\n(c) the expenses on objects and for purposes authorised by this Act.",
"footnote": "",
"is_definition": false,
"sort_order": 16
},
{
"number": "15",
"title": "15. Accounts and audit.",
"chapter": null,
"content": "[Chapter VI-A]\nPenalties And Adjudication",
"footnote": "",
"is_definition": false,
"sort_order": 17
},
{
"number": "15A",
"title": "15A. Penalty for failure to furnish information, return, etc.",
"chapter": null,
"content": "(a) to furnish any document, return or report to the Board, fails to furnish the same [or who furnishes or files false, incorrect or incomplete information, return, report, books or other documents]\n(b) to file any return or furnish any information, books or other documents within the time specified therefor in the regulations, fails to file return or furnish the same within the time specified therefor in the regulations [or who furnishes or files false, incorrect or incomplete information, return, report, books or other documents] , he shall be liable to [a penalty [which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees] ]\n(c) to maintain books of account or records, fails to maintain the same, he shall be liable to [a penalty [which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees] ]",
"footnote": "",
"is_definition": false,
"sort_order": 18
},
{
"number": "15B",
"title": "15B. Penalty for failure by any person to enter into agreement with clients.",
"chapter": null,
"content": "[15C. Penalty for failure to redress investors' grievances.",
"footnote": "",
"is_definition": false,
"sort_order": 19
},
{
"number": "15D",
"title": "15D. Penalty for certain defaults in case of mutual funds.",
"chapter": null,
"content": "(a) required under this Act or any rules or regulations made thereunder to obtain a certificate of registration from the Board for sponsoring or carrying on any collective investment scheme, including mutual funds, sponsors or carries on any collective investment scheme, including mutual funds, without obtaining such certificate of registration, he shall be liable to [a penalty\n(b) registered with the Board as a collective investment scheme, including mutual funds, for sponsoring or carrying on any investment scheme, fails to comply with the terms and conditions of certificate of registration, he shall be liable to [a penalty] [which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]\n(c) registered with the Board as a collective investment scheme including mutual funds, fails to make an application for listing of its schemes as provided for in the regulations governing such listing, he shall be liable to [a penalty] [which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]\n(d) registered as a collective investment scheme, including mutual funds, fails to despatch unit certificates of any scheme in the manner provided in the regulation governing such despatch, he shall be liable to [a penalty] [which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]\n(e) registered as a collective investment scheme, including mutual funds, fails to refund the application monies, paid by the investors within the period specified in the regulations, he shall be liable to [a penalty] [which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees]\n(f) registered as a collective investment scheme, including mutual funds, fails to invest money collected by such collective investment schemes in the manner or within the period specified in the regulations, he shall be liable to a penalty [which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which such failure continues subject to a maximum of one crore rupees] .",
"footnote": "",
"is_definition": false,
"sort_order": 20
},
{
"number": "15E",
"title": "15E. Penalty for failure to observe rules and regulations by an asset management company.",
"chapter": null,
"content": "[15EA. Penalty for default in case of alternative investment funds, infrastructure investment trusts and real estate investment trusts.",
"footnote": "",
"is_definition": false,
"sort_order": 21
},
{
"number": "15EB",
"title": "15EB. Penalty for default in case of investment adviser and research analyst.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 22
},
{
"number": "15F",
"title": "15F. Penalty for default in case of stock brokers.",
"chapter": null,
"content": "(a) fails to issue contract notes in the form and manner specified by the stock exchange of which such broker is a member, he shall be liable to [a penalty which shall not be less than one lakh rupees but which may extend to]\n(b) fails to deliver any security or fails to make payment of the amount due to the investor in the manner within the period specified in the regulations, he shall be liable to [a penalty] [which shall not be less than one lakh rupees but which may extend to one lakh rupees for each day during which [such failure continues] subject to a maximum of one crore rupees]\n(c) charges an amount of brokerage which is in excess of the brokerage specified in the regulations, he shall be liable to [a penalty of one lakh rupees] or five times the amount [which shall not be less than one lakh rupees but which may extend to five times the amount of brokerage] whichever is higher.",
"footnote": "",
"is_definition": false,
"sort_order": 23
},
{
"number": "15G",
"title": "15G. Penalty for insider trading.",
"chapter": null,
"content": "(i) either on his own behalf or on behalf of any other person, deals in securities of a body corporate listed on any stock exchange on the basis of any unpublished price sensitive information; or\n(ii) communicates any unpublished price sensitive information to any person with or without his request for such information except as required in the ordinary course of business or under any law; or\n(iii) counsels, or procures for any other person to deal in any securities of any body corporate on the basis of unpublished price sensitive information, shall be liable to a penalty [which shall not be less than ten lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of insider trading, whichever is higher]",
"footnote": "",
"is_definition": false,
"sort_order": 24
},
{
"number": "15H",
"title": "15H. Penalty for non-disclosure of acquisition of shares and takeovers.",
"chapter": null,
"content": "(i) disclose the aggregate of his shareholding in the body corporate before he acquires any shares of that body corporate; or\n(ii) make a public announcement to acquire shares at a minimum price;\n[(iii) make a public offer by sending letter of offer to the shareholders of the concerned company; or\n(iv) make payment of consideration to the shareholders who sold their shares pursuant to letter of offer,]\n[15HA. Penalty for fraudulent and unfair trade practices.",
"footnote": "",
"is_definition": false,
"sort_order": 25
},
{
"number": "15HB",
"title": "15HB. Penalty for contravention where no separate penalty has been provided.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 26
},
{
"number": "15I",
"title": "15I. Power to adjudicate.",
"chapter": null,
"content": "15J. [Factors to be taken into account while adjudging quantum of penalty.]\n(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;\n(b) the amount of loss caused to an investor or group of investors as a result of the default;\n(c) the repetitive nature of the default.\n[15JA. Crediting sum realised by way of penalties to Consolidated Fund of India.\n[15JB. Settlement of administrative and civil proceedings. -\nChapter VI-B\nEstablishment, Jurisdiction, Authority And Procedure Of Appellate Tribunal",
"footnote": "",
"is_definition": false,
"sort_order": 27
},
{
"number": "15K",
"title": "15K. Establishment of Securities Appellate Tribunals.",
"chapter": null,
"content": "[15L. Composition of Securities Appellate Tribunal.",
"footnote": "",
"is_definition": false,
"sort_order": 28
},
{
"number": "15M",
"title": "15M. Qualification for appointment as Presiding Officer or Member of Securities Appellate Tribunal.",
"chapter": null,
"content": "(a) is a sitting or retired Judge of the Supreme Court or a sitting or retired Chief Justice of a High Court; or\n(b) is a sitting or retired Judge of a High Court who has completed not less than seven years of service as a Judge in a High Court.\n[15N. Tenure of office of Presiding Officer and other Members of Securities Appellate Tribunal.",
"footnote": "",
"is_definition": false,
"sort_order": 29
},
{
"number": "15O",
"title": "15O. Salary and allowances and other terms and conditions of service of Presiding Officers.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 30
},
{
"number": "15P",
"title": "15P. Filling up of vacancies.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 31
},
{
"number": "15Q",
"title": "15Q. Resignation and removal.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 32
},
{
"number": "15R",
"title": "15R. Orders constituting Appellate Tribunal to be final and not to invalidate its proceedings.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 33
},
{
"number": "15S",
"title": "15S. Staff of the Securities Appellate Tribunal.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 34
},
{
"number": "15T",
"title": "15T. Appeal to the Securities Appellate Tribunal.",
"chapter": null,
"content": "(a) by an order of the Board made, on and after the commencement of the Securities Laws (Second Amendment) Act, 1999, under this Act, or the rules or regulations made thereunder; or\n(b) by an order made by an adjudicating officer under this Act, may prefer an appeal to a Securities Appellate Tribunal having jurisdiction in the matter.",
"footnote": "",
"is_definition": false,
"sort_order": 35
},
{
"number": "15U",
"title": "15U. Procedure and powers of the Securities Appellate Tribunal.",
"chapter": null,
"content": "(a) summoning and enforcing the attendance of any person and examining him on oath;\n(b) requiring the discovery and production of documents;\n(c) receiving evidence on affidavits;\n(d) issuing commissions for the examination of witnesses or documents;\n(e) reviewing its decisions;\n(f) dismissing an application for default or deciding it ex parte ;\n(g) setting aside any order of dismissal of any application for default or any order passed by it ex parte ;\n(h) any other matter which may be prescribed.\n[15V. Right to legal representation.\n(a) \"chartered accountant\" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act;\n(b) \"company secretary\" means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act;\n(c) \"cost accountant\" means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act;\n(d) \"legal practitioner\" means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice.]",
"footnote": "",
"is_definition": false,
"sort_order": 36
},
{
"number": "15W",
"title": "15W. Limitation.",
"chapter": null,
"content": "[15X. Presiding Officer, Members and Staff of Securities Appellate Tribunals to be public servants.",
"footnote": "",
"is_definition": false,
"sort_order": 37
},
{
"number": "15Y",
"title": "15Y. Civil Court not to have jurisdiction.",
"chapter": null,
"content": "[15Z. Appeal to Supreme Court.\nChapter VII\nMiscellaneous",
"footnote": "",
"is_definition": false,
"sort_order": 38
},
{
"number": "16",
"title": "16. Power of Central Government to issue directions.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 39
},
{
"number": "17",
"title": "17. Power of Central Government to supersede the Board.",
"chapter": null,
"content": "(a) that on account of grave emergency, the Board is unable to discharge the functions and duties imposed on it by or under the provisions of this Act; or\n(b) that the Board has persistently made default in complying with any direction issued by the Central Government under this Act or in the discharge of the functions and duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Board or the administration of the Board has deteriorated; or\n(c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification, supersede the Board for such period, not exceeding six months, as may be specified in the notification.\n(a) all the members shall, as from the date of supersession, vacate their offices as such;\n(b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Board, shall until the Board is reconstituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct; and\n(c) all property owned or controlled by the Board shall, until the Board is reconstituted under sub-section (3), vest in the Central Government.",
"footnote": "",
"is_definition": false,
"sort_order": 40
},
{
"number": "18",
"title": "18. Returns and reports.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 41
},
{
"number": "19",
"title": "19. Delegation.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 42
},
{
"number": "20",
"title": "20. Appeals.",
"chapter": null,
"content": "[20A. Bar of jurisdiction.",
"footnote": "",
"is_definition": false,
"sort_order": 43
},
{
"number": "21",
"title": "21. Savings.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 44
},
{
"number": "22",
"title": "22. Members, officers and employees of the Board to be public servants.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 45
},
{
"number": "23",
"title": "23. Protection of action taken in good faith.",
"chapter": null,
"content": "[24. Offences.\n[24A. Composition of certain offences.",
"footnote": "",
"is_definition": false,
"sort_order": 46
},
{
"number": "24B",
"title": "24B. Power to grant immunity.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 47
},
{
"number": "25",
"title": "25. Exemption from tax on wealth and income.",
"chapter": null,
"content": "(a) the Board;\n(b) the existing Securities and Exchange Board from the date of its constitution to the date of establishment of the Board, shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived.",
"footnote": "",
"is_definition": false,
"sort_order": 48
},
{
"number": "26",
"title": "26. Cognizance of offences by Courts.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 49
},
{
"number": "26A",
"title": "26A. Establishment of Special Courts.",
"chapter": null,
"content": "(2) A Special Court shall consist of a single judge who shall be appointed by the Central Government with the concurrence of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working.\n(3) A person shall not be qualified for appointment as a judge of a Special Court unless he is, immediately before such appointment, holding the office of a Sessions Judge or an Additional Sessions Judge, as the case may be.",
"footnote": "",
"is_definition": false,
"sort_order": 50
},
{
"number": "26B",
"title": "26B. Offences triable by Special Courts.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 51
},
{
"number": "26C",
"title": "26C. Appeal and revision.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 52
},
{
"number": "26D",
"title": "26D. Application of Code to proceedings before Special Court.",
"chapter": null,
"content": "(2) The person conducting prosecution referred to in sub-section (1) should have been in practice as an advocate for not less than seven years or should have held a post, for a period of not less than seven years, under the Union or a State, requiring special knowledge of law.",
"footnote": "",
"is_definition": false,
"sort_order": 53
},
{
"number": "26E",
"title": "26E. Transitional provisions.",
"chapter": null,
"content": "27. [Contravention by companies.]\n(a) \"company\" means any body corporate and includes a firm or other association of individuals; and\n(b) \"director\" , in relation to a firm, means a partner in the firm.",
"footnote": "",
"is_definition": false,
"sort_order": 54
},
{
"number": "28",
"title": "28. Power to exempt.",
"chapter": null,
"content": "[28A. Recovery of amounts.\n(a) attachment and sale of the person's movable property;\n(b) attachment of the person's bank accounts;\n(c) attachment and sale of the person's immovable property;\n(d) arrest of the person and his detention in prison;\n(e) appointing a receiver for the management of the person's movable and immovable properties,\n[28B. Continuance of proceedings.\n(a) any proceeding for disgorgement, refund or an action for recovery before the Recovery Officer under this Act, except a proceeding for levy of penalty, initiated against the deceased before his death, shall be deemed to have been initiated against the legal representative, and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased and all the provisions of this Act shall apply accordingly;\n(b) any proceeding for disgorgement, refund or an action for recovery before the Recovery Officer under this Act, except a proceeding for levy of penalty, which could have been initiated against the deceased if he had survived, may be initiated against the legal representative and all the provisions of this Act shall apply accordingly.\n[28C. Powers of Board not to apply to International Financial Services Centre.\n(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005;\n(b) shall be exercisable by the International Financial Services Centres Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019,",
"footnote": "",
"is_definition": false,
"sort_order": 55
},
{
"number": "29",
"title": "29. Power to make rules.",
"chapter": null,
"content": "(a) the term of office and other conditions of service of the Chairman and the members under sub-section (1) of section 5;\n(b) the additional functions that may be performed by the Board under section 11;\n[* * *]\n(d) the manner in which the accounts of the Board shall be maintained under section 15;\n[(da) the manner of inquiry under sub-section (1) of section 15-I;\n(db) the salaries and allowances and other terms and conditions of service of the] [Presiding Officers, Members] [and other officers and employees of the Securities Appellate Tribunal under section 15-O and sub-section (3) of section 15-S;\n(dc) the procedure for the investigation of misbehaviour or incapacity of the] [Presiding Officers, or other Members] [of the Securities Appellate Tribunals under sub-section (3) of section 15-Q;\n(dd) the form in which an appeal may be filed before the Securities Appellate Tribunal under section 15-T and the fees payable in respect of such appeal;]\n(e) the form and the manner in which returns and report to be made to the Central Government under section 18;\n(f) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be, or may be, made by rules.",
"footnote": "",
"is_definition": false,
"sort_order": 56
},
{
"number": "30",
"title": "30. Power to make regulations.",
"chapter": null,
"content": "(a) the times and places of meetings of the Board and the procedure to be followed at such meetings under sub-section (1) of section 7 including the quorum necessary for the transaction of business;\n(b) the term and other conditions of service of officers and employees of the Board under sub-section (2) of section 9;\n[(c) the matters relating to issue of capital, transfer of securities and other matters incidental thereto and the manner in which such matters shall be disclosed by the companies under section 11-A;\n[(ca) the utilisation of the amount credited under sub-section (5) of section 11;\n(cb) the fulfilment of other conditions relating to collective investment scheme under sub-section (2A) of section 11AA\n(cc) the procedure to be followed by the authorised officer for search or seizure under sub-section (9) of section 11C;]\n(d) the conditions subject to which certificate of registration is to be issued, the amount of fee to be paid for certificate of registration and the manner of suspension or cancellation of certificate of registration under section 12.]\n[(da) the terms determined by the Board for settlement of proceedings under sub-section (2) and the procedure for conducting of settlement proceedings under sub-section (3) of section 15JB;\n(db) any other matter which is required to be, or may be, specified by regulations or in respect of which provision is to be made by regulations.]",
"footnote": "",
"is_definition": false,
"sort_order": 57
},
{
"number": "31",
"title": "31. Rules and regulations to be laid before Parliament.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 58
},
{
"number": "32",
"title": "32. Application of other laws not barred.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 59
},
{
"number": "33",
"title": "33. Amendment of certain enactments.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 60
},
{
"number": "34",
"title": "34. Power to remove difficulties.",
"chapter": null,
"content": "[34A.",
"footnote": "",
"is_definition": false,
"sort_order": 61
},
{
"number": "35",
"title": "35. Repeal and saving.",
"chapter": null,
"content": "The Schedule\n[See section 33]\nAmendment of Certain Enactments\nPart I\nPart I\nAmendment to the Capital Issues (Control) Act, 1947 (29 of 1947)\nPart II\nPart II\nAmendments to the Securities Contracts (Regulation) Act, 1956 (42 of 1956)\n\"(ii) Government securities;\n(iia) such other instruments as may be declared by the Central Government to be securities; and\".\n(i) in sub -section (1), for \"Central Government\", substitute \"Securities and Exchange Board of India\";\n(ii) in sub -section (2) for \"by the Central Government\", substitute \"by the Securities and Exchange Board of India\".\n(iii) in sub -section (3), for \"Central Government\", wherever it occurs, substitute \"Securities and Exchange Board of India\";\n\"(b) that the transfer of the securities is in contravention of any law or rules made thereunder or any administrative instructions or conditions of listing agreement laid down in pursuance of such laws and rules.\";\n\" 29A. Power to delegate . - The Central Government may, by order published in the Official Gazette, direct that the powers exercisable by it under any provision of this Act shall, in relation to such matters and subject to such conditions, if any as may be specified in order, be excusable also by the Securities and Exchange Board of India.\"",
"footnote": "",
"is_definition": false,
"sort_order": 62
},
{
"number": "29A",
"title": "29A. Power to delegate",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 63
}
],
"metadata": {
"Act ID": "Last Updated 20th January, 2020 [22/973]",
"Act Number": "(15 of 1992)",
"Enactment Date": "4th April, 1992",
"Act Year": "1992",
"Short Title": "The Securities and Exchange Board of India Act, 1992",
"Type": "CENTRAL",
"Location": "India (Central)"
},
"updated_at": "2026-09-29 21:51:58"
}