List of Governors of the 1. Sir Osborne Smith (1935 1937) 2. Sir James Tay or (1937 19!3) 3. Sir ".

;. #. #eshm$%h (19!3 19!9) !. Sir &ene'a (ama (a$ (19!9 1957) 5. ). G. *mbe'aon%ar (1957) +. ,. -. (. .yen'ar (1957 19+2) 7. /. ". &hatta0harya (19+2 19+7) 1. L. ). Jha (19+7 1972) 9. &. 3. *4ar%ar (1972) 12. S. Ja'annathan (1972 1975) 11. 3. ". Sen G$5ta (1975) 12. ). (. /$ri (1975 1977) 13. 6. 3arasimham (1977) 1!. #r. .. G. /ate (1977 1912) 15. #r. 6anmohan Sin'h (1912 1915) 1+. *. Ghosh (1915) 17. (. 3. 6a hotra (1915 1992) 11. S. -en%itaramanan (1992 1992) 19. #r. ". (an'ara7an (#e0ember 228 1992 3ovember 128 1997) 22. #r. &ima Ja an (3ovember 118 1997 Se5tember 58 2223) 21. #r. 9. -en$'o5a (e44y (Se5tember +8 2223 Se5tember 58 2221) 22. #r. #. S$bbarao (Se5tember +8 2221 : Ti #ate)
About SEBI ESTABLISHMENT OF SEBI

The Se0$rities an4 ;<0han'e &oar4 of .n4ia =as estab ishe4 on *5ri 128 1992 in a00or4an0e =ith the 5rovisions of the Se0$rities an4 ;<0han'e &oar4 of .n4ia *0t8 1992.
PREAMBLE

The /reamb e of the Se0$rities an4 ;<0han'e &oar4 of .n4ia 4es0ribes the basi0 f$n0tions of the Se0$rities an4 ;<0han'e &oar4 of .n4ia as ..to protect the interests of investors in securities and to promote the development
of, and to regulate the securities market and for matters connected therewith or incidental thereto Powers and Functions of the Board Co !osition of Securities A!!e""ate Tribuna" #SAT$%

Justice N K Sodhi Shri P K Malhotra Shri S.S.N.Moorthy

Presiding Officer Member Member

Or&anisation Structure Functions of 'e!art ents ( 'i)isions Addresses of Offices of SEBI SEBI Co ittees SEBI Bench ar*s

For

er Chair

en of SEBI

CHAIRMAN
Shri ! "! Sinha, Chairman, SEBI, SEBI Bhavan, Bandra Kurla Complex, Bandra (E), Mumbai - 400051

Powers and Functions of the Board

#H$ S$C RI#I$S AN% $&CHAN'$ ()AR% )* IN%IA AC#, +,,3o.15 of 1992 !n !"# #o provide $or #he e%#abli%hmen# o$ a Board #o pro#e"# #he in#ere%#% o$ inve%#or% in %e"uri#ie% and #o promo#e #he developmen# o$, and #o re&ula#e, #he %e"uri#ie% mar'e# and $or ma##er% "onne"#ed #here(i#h or in"iden#al #here#o Be i# ena"#ed b) *arliamen# in #he +or#)-#hird ,ear o$ #he -epubli" o$ India a% $ollo(%.

C/!*0E- I (*reliminar)) C/!*0E- II (E%#abli%hmen# 1$ 0he Se"uri#ie% !nd Ex"han&e Board 1$ India) C/!*0E- III (0ran%$er 1$ !%%e#%, 2iabili#ie%, e#" , 1$ 0he Exi%#in& Se"uri#ie% !nd Ex"han&e Board 0o 0he Board) C/!*0E- I3 (*o(er% !nd +un"#ion% 1$ 0he Board) C/!*0E- 3 (-e&i%#ra#ion Cer#i$i"a#e) C/!*0E- 3! (*rohibi#ion 1$ Manipula#ive !nd 4e"ep#ive 4evi"e%, In%ider 0radin& !nd Sub%#an#ial !"5ui%i#ion 1$ Se"uri#ie% 1r Con#rol ) C/!*0E- 3I (+inan"e, !""oun#% !nd !udi#) C/!*0E- 3I! (*enal#ie% and !d6udi"a#ion) C/!*0E- 3IB (E%#abli%hmen#, 7uri%di"#ion, !u#hori#) and *ro"edure o$ !ppella#e 0ribunal C/!*0E- 3II (Mi%"ellaneou%)

CHA.#$R I .R$/IMINAR0 Short title, e1tent 2 commencement! 1 (1) 0hi% !"# ma) be "alled #he Se"uri#ie% and Ex"han&e Board o$ India !"#, 1889 (9) I# ex#end% #o #he (hole o$ India (:) I# %hall be deemed #o have "ome in#o $or"e on #he :0#h da) o$ 7anuar), 1889 %efinitions! 9 (1) In #hi% !"#, unle%% #he "on#ex# o#her(i%e re5uire%, (a) ;Board; mean% #he Se"uri#ie% and Ex"han&e Board o$ India e%#abli%hed under %e"#ion :<

(b) ;Chairman; mean% #he Chairman o$ #he Board< =(ba) "collective investment scheme" means any scheme or arrangement which satisfies the conditions specified in Section 11AA; > (") ;exi%#in& Se"uri#ie% and Ex"han&e Board; mean% #he Se"uri#ie% and Ex"han&e Board o$ India "on%#i#u#ed under #he -e%olu#ion o$ #he ?overnmen# o$ India in #he 4epar#men# o$ E"onomi" !$$air% @o 1 (44)SEABC, da#ed #he 19#h da) o$ !pril, 18BB< (d) ;+und; mean% #he +und "on%#i#u#ed under Se"#ion 14< (e) ;member; mean% a member o$ #he Board and in"lude% #he Chairman< ($) ;no#i$i"a#ion; mean% a no#i$i"a#ion publi%hed in #he 1$$i"ial ?aDe##e< (&) ;pre%"ribed; mean% pre%"ribed b) rule% made under #hi% !"#< (h) ;re&ula#ion%; mean% #he re&ula#ion% made b) #he Board under #hi% !"#< =(ha) ;-e%erve Ban'; mean% #he -e%erve Ban' o$ India "on%#i#u#ed under %e"#ion : o$ #he -e%erve Ban' o$ India !"#, 18:4(9 o$ 18:4)<> (i) ;%e"uri#ie%; ha% #he meanin& a%%i&ned #o i# in %e"#ion 9 o$ #he Se"uri#ie% Con#ra"#% (-e&ula#ion) !"#,185C (49 o$ 185C) =(9) Eord% and expre%%ion% u%ed and no# de$ined in #hi% !"#, bu# de$ined in #he Se"uri#ie% Con#ra"#% (-e&ula#ion) !"#, 185C(49 o$ 185C), =or #he 4epo%i#orie% !"#, 188C>, %hall have #he meanin&% re%pe"#ivel) a%%i&ned #o #hem in #ha# !"# > CHA.#$R II $S#A(/ISHM$N# )* #H$ S$C RI#I$S AN% $&CHAN'$ ()AR% )* IN%IA $sta3lishment and incorporation of (oard! : (1) Ei#h e$$e"# $rom %u"h da#e a% #he Cen#ral ?overnmen# ma), b) no#i$i"a#ion, appoin#, #here %hall be e%#abli%hed, $or #he purpo%e% o$ #hi% !"#, a Board b) #he name o$ #he Se"uri#ie% and Ex"han&e Board o$ India (9) 0he Board %hall be a bod) "orpora#e b) #he name a$ore%aid, havin& perpe#ual %u""e%%ion and a "ommon %eal, (i#h po(er %ub6e"# #o #he provi%ion% o$ #hi% !"#, #o a"5uire, hold and di%po%e o$ proper#), bo#h movable and immovable, and #o "on#ra"#, and %hall, b) #he %aid name, %ue or be %ued (:) 0he head o$$i"e o$ #he Board %hall be a# Bomba) (4) 0he Board ma) e%#abli%h o$$i"e% a# o#her pla"e% in India Management of the (oard! 4 (1) 0he Board %hall "on%i%# o$ #he $ollo(in& member%, namel).(a) a Chairman< (b) #(o member% $rom amon&%# #he o$$i"ial% o$ #he =Mini%#r)> o$ #he Cen#ral ?overnmen# dealin& (i#h +inan"e =and admini%#ra#ion o$ #he Companie% !"#, 185C(1 o$ 185C)>< (") one member $rom amon&%# #he o$$i"ial% o$ =#he -e%erve Ban'>< =(d) $ive o#her member% o$ (hom a# lea%# #hree %hall be #he (hole-#ime member%> #o be appoin#ed b) #he "en#ral ?overnmen#

(9) 0he &eneral %uperin#enden"e, dire"#ion and mana&emen# o$ #he a$$air% o$ #he Board %hall ve%# in a Board o$ member%, (hi"h ma) exer"i%e all po(er% and do all a"#% and #hin&% (hi"h ma) be exer"i%ed or done b) #he Board (:) Save a% o#her(i%e de#ermined b) re&ula#ion%, #he Chairman %hall al%o have po(er% o$ &eneral %uperin#enden"e and dire"#ion o$ #he a$$air% o$ #he Board and ma) al%o exer"i%e all po(er% and do all a"#% and #hin&% (hi"h ma) be exer"i%ed or done b) #ha# Board (4) 0he Chairman and member% re$erred #o in "lau%e% (a) and (d) o$ %ub%e"#ion (1) %hall be appoin#ed b) #he Cen#ral ?overnmen# and #he member% re$erred #o in "lau%e% (b) and (") o$ #ha# %ub-%e"#ion %hall be nomina#ed b) #he Cen#ral ?overnmen# and #he =-e%erve Ban'> re%pe"#ivel) (5) 0he Chairman and #he o#her member% re$erred #o in "lau%e% (a) and (d) o$ %ub-%e"#ion (1) %hall be per%on% o$ abili#), in#e&ri#) and %#andin& (ho have %ho(n "apa"i#) in dealin& (i#h problem% rela#in& #o %e"uri#ie% mar'e# or have %pe"ial 'no(led&e or experien"e o$ la(, $inan"e, e"onomi"%, a""oun#an"), admini%#ra#ion or in an) o#her di%"ipline (hi"h, in #he opinion o$ #he Cen#ral ?overnmen#, %hall be u%e$ul #o #he Board #erm of office and conditions of service of Chairman and mem3ers of the (oard! 5 (1) 0he #erm o$ o$$i"e and o#her "ondi#ion% o$ %ervi"e o$ #he Chairman and #he member% re$erred #o in "lau%e (d) o$ %ub- %e"#ion (1) o$ %e"#ion 4 %hall be %u"h a% ma) be pre%"ribed (9) @o#(i#h%#andin& an)#hin& "on#ained in %ub-%e"#ion (1), #he Cen#ral ?overnmen# %hall have #he ri&h# #o #ermina#e #he %ervi"e% o$ #he Chairman or a member appoin#ed under "lau%e (d) o$ %ub-%e"#ion (1) o$ %e"#ion 4, a# an) #ime be$ore #he expir) o$ #he period pre%"ribed under %ub-%e"#ion (1), b) &ivin& him no#i"e o$ no# le%% #han #hree mon#h% in (ri#in& or #hree mon#h%F %alar) and allo(an"e% in lieu #hereo$, and #he Chairman or a member, a% #he "a%e ma) be, %hall al%o have #he ri&h# #o relin5ui%h hi% o$$i"e, a# an) #ime be$ore #he expir) o$ #he period pre%"ribed under %ub-%e"#ion (1), b) &ivin& #o #he Cen#ral ?overnmen# no#i"e o$ no# le%% #han #hree mon#h% in (ri#in& Removal of mem3er from office! C = > 0he Cen#ral ?overnmen# %hall remove a member $rom o$$i"e i$ he (a) i%, or a# an) #ime ha% been, ad6udi"a#ed a% in%olven#< (b) i% o$ un%ound mind and %#and% %o de"lared b) a "ompe#en# "our#< (") ha% been "onvi"#ed o$ an o$$en"e (hi"h, in #he opinion o$ #he Cen#ral ?overnmen#, involve% a moral #urpi#ude< =(d) > (e) ha%, in #he opinion o$ #he Cen#ral ?overnmen#, %o abu%ed hi% po%i#ion a% #o render hi% "on#inua#ion in o$$i"e de#rimen#al #o #he publi" in#ere%#. *rovided #ha# no member %hall be removed under #hi% "lau%e unle%% he ha% been &iven a rea%onable oppor#uni#) o$ bein& heard in #he ma##er Meetings!

G (1) 0he Board %hall mee# a# %u"h #ime% and pla"e%, and %hall ob%erve %u"h rule% o$ pro"edure in re&ard #o #he #ran%a"#ion o$ bu%ine%% a# i#% mee#in&% (in"ludin& 5uorum a# %u"h mee#in&%) a% ma) be provided b) re&ula#ion% (9) 0he Chairman or, i$ $or an) rea%on, he i% unable #o a##end a mee#in& o$ #he Board, an) o#her member "ho%en b) #he member% pre%en# $rom amon&%# #hem%elve% a# #he mee#in& %hall pre%ide a# #he mee#in& (:) !ll 5ue%#ion% (hi"h "ome up be$ore an) mee#in& o$ #he Board %hall be de"ided b) a ma6ori#) vo#e% o$ #he member% pre%en# and vo#in&, and, in #he even# o$ an e5uali#) o$ vo#e%, #he Chairman, or in hi% ab%en"e, #he per%on pre%idin&, %hall have a %e"ond or "a%#in& vo#e Mem3er not to participate in meetings in certain cases! =H7A. Any member, who is a director of a company and who as s ch director has any direct or indirect pec niary interest in any matter coming p for consideration at a meeting of the !oard, shall, as soon as possible after relevant circ mstances have come to his "nowledge, disclose the nat re of his interest at s ch meeting and s ch disclos re shall be recorded in the proceedings of the !oard, and the member shall not ta"e any part in any deliberation or decision of the !oard with respect to that matter I > 4acancies etc!, not to invalidate proceedings of (oard! B @o a"# or pro"eedin& o$ #he Board %hall be invalid merel) b) rea%on o$ (a) an) va"an") in, or an) de$e"# in #he "on%#i#u#ion o$, #he Board< or (b) an) de$e"# in #he appoin#men# o$ a per%on a"#in& a% a member o$ #he Board< or (") an) irre&ulari#) in #he pro"edure o$ #he Board no# a$$e"#in& #he meri#% o$ #he "a%e )fficers and emplo5ees of the (oard! 8 (1) 0he Board ma) appoin# %u"h o#her o$$i"er% and emplo)ee% a% i# "on%ider% ne"e%%ar) $or #he e$$i"ien# di%"har&e o$ i#% $un"#ion% under #hi% !"# (9) 0he #erm and o#her "ondi#ion% o$ %ervi"e o$ o$$i"er% and emplo)ee% o$ #he Board appoin#ed under %ub- %e"#ion (1) %hall be %u"h a% ma) be de#ermined b) re&ula#ion% CHA.#$R III #RANS*$R )* ASS$#S, /IA(I/I#I$S, $#C!, )* #H$ $&IS#IN' S$C RI#I$S AN% $&CHAN'$ ()AR% #) #H$ ()AR% #ransfer of assets, lia3ilities, etc!, of e1isting Securities and $1change (oard to the (oard! 10 (1) 1n and $rom #he da#e o$ e%#abli%hmen# o$ #he Board,(a) an) re$eren"e #o #he exi%#in& Se"uri#ie% and Ex"han&e Board in an) la( o#her #han #hi% !"# or in an) "on#ra"# or o#her in%#rumen# %hall be deemed a% a re$eren"e #o #he Board< (b) all proper#ie% and a%%e#%, movable and immovable, o$, or belon&in& #o, #he exi%#in& Se"uri#ie% and Ex"han&e Board, %hall ve%# in #he Board< (") all ri&h#% and liabili#ie% o$ #he exi%#in& Se"uri#ie% and Ex"han&e Board %hall be #ran%$erred #o, and be #he ri&h#% and liabili#ie% o$, #he Board<

(d) (i#hou# pre6udi"e #o #he provi%ion% o$ "lau%e ("), all deb#%, obli&a#ion% and liabili#ie% in"urred, all "on#ra"#% en#ered in#o and all ma##er% and #hin&% en&a&ed #o be done b), (i#h or $or #he exi%#in& Se"uri#ie% and Ex"han&e Board immedia#el) be$ore #ha# da#e, $or or in "onne"#ion (i#h #he purpo%e o$ #he %aid exi%#in& Board %hall be deemed #o have been in"urred, en#ered in#o or en&a&ed #o be done b), (i#h $or, #he Board< (e) all %um% o$ mone) due #o #he exi%#in& Se"uri#ie% and Ex"han&e Board immedia#el) be$ore #ha# da#e %hall be deemed #o be due #o #he Board< ($) all %ui#% and o#her le&al pro"eedin&% in%#i#u#ed or (hi"h "ould have been in%#i#u#ed b) or a&ain%# #he exi%#in& Se"uri#ie% and Ex"han&e Board immedia#el) be$ore #ha# da#e ma) be "on#inued or ma) be in%#i#u#ed b) or a&ain%# #he Board< and (&) ever) emplo)ee holdin& an) o$$i"e under #he exi%#in& Se"uri#ie% and Ex"han&e Board immedia#el) be$ore #ha# da#e %hall hold hi% o$$i"e in #he Board b) #he %ame #enure and upon #he %ame #erm% and "ondi#ion% o$ %ervi"e a% re%pe"#% remunera#ion, leave, providen# $und, re#iremen# and o#her #erminal bene$i#% a% he (ould have held %u"h o$$i"e i$ #he Board had no# been e%#abli%hed and %hall "on#inue #o do a% %o an emplo)ee o$ #he Board or un#il #he expir) o$ #he period o$ %ix mon#h% $rom #ha# da#e i$ %u"h emplo)ee op#% no# #o be #he emplo)ee o$ #he Board (i#hin %u"h period (9) @o#(i#h%#andin& an)#hin& "on#ained in #he Indu%#rial 4i%pu#e% !"#, 184G(14 o$ 184G), or in an) o#her la( $or #he #ime bein& in $or"e, ab%orp#ion o$ an) emplo)ee b) #he Board in i#% re&ular %ervi"e under #hi% %e"#ion %hall no# en#i#le %u"h emplo)ee #o an) "ompen%a#ion under #ha# !"# or o#her la( and no %u"h "laim %hall be en#er#ained b) an) "our#, #ribunal or o#her au#hori#) CHA.#$R I4 .)6$RS AN% * NC#I)NS )* #H$ ()AR% *unctions of (oard! 11 (1) Sub6e"# #o #he provi%ion% o$ #hi% !"#, i# %hall be #he du#) o$ #he Board #o pro#e"# #he in#ere%#% o$ inve%#or% in %e"uri#ie% and #o promo#e #he developmen# o$, and #o re&ula#e #he %e"uri#ie% mar'e#, b) %u"h mea%ure% a% i# #hin'% $i# (9) Ei#hou# pre6udi"e #o #he &enerali#) o$ #he $ore&oin& provi%ion%, #he mea%ure% re$erred #o #herein ma) provide $or (a) re&ula#in& #he bu%ine%% in %#o"' ex"han&e% and an) o#her %e"uri#ie% mar'e#%< (b) re&i%#erin& and re&ula#in& #he (or'in& o$ %#o"' bro'er%, %ub-bro'er%, %hare #ran%$er a&en#%, ban'er% #o an i%%ue, #ru%#ee% o$ #ru%# deed%, re&i%#rar% #o an i%%ue, mer"han# ban'er%, under(ri#er%, por#$olio mana&er%, inve%#men# advi%er% and %u"h o#her in#ermediarie% (ho ma) be a%%o"ia#ed (i#h %e"uri#ie% mar'e#% in an) manner< =(ba) re&i%#erin& and re&ula#in& #he (or'in& o$ #he depo%i#orie%, =par#i"ipan#%,> "u%#odian% o$ %e"uri#ie%, $orei&n in%#i#u#ional inve%#or%, "redi# ra#in& a&en"ie% and %u"h o#her in#ermediarie% a% #he Board ma), b) no#i$i"a#ion, %pe"i$) in #hi% behal$<> (") re&i%#erin& and re&ula#in& #he (or'in& o$ =ven#ure "api#al $und% and "olle"#ive inve%#men# %"heme%>,in"ludin& mu#ual $und%<

(d) promo#in& and re&ula#in& %el$-re&ula#or) or&ani%a#ion%< (e) prohibi#in& $raudulen# and un$air #rade pra"#i"e% rela#in& #o %e"uri#ie% mar'e#%< ($) promo#in& inve%#or%J edu"a#ion and #rainin& o$ in#ermediarie% o$ %e"uri#ie% mar'e#%< (&) prohibi#in& in%ider #radin& in %e"uri#ie%< (h) re&ula#in& %ub%#an#ial a"5ui%i#ion o$ %hare% and #a'e-over o$ "ompanie%< (i) "allin& $or in$orma#ion $rom, under#a'in& in%pe"#ion, "ondu"#in& in5uirie% and audi#% o$ #he = %#o"' ex"han&e%, mu#ual $und%, o#her per%on% a%%o"ia#ed (i#h #he %e"uri#ie% mar'e#> in#ermediarie% and %el$- re&ula#or) or&aniDa#ion% in #he %e"uri#ie% mar'e#< =H(ia) "allin& $or in$orma#ion and re"ord $rom an) ban' or an) o#her au#hori#) or board or "orpora#ion e%#abli%hed or "on%#i#u#ed b) or under an) Cen#ral, S#a#e or *rovin"ial !"# in re%pe"# o$ an) #ran%a"#ion in %e"uri#ie% (hi"h i% under inve%#i&a#ion or in5uir) b) #he Board<I> (6) per$ormin& %u"h $un"#ion% and exer"i%in& %u"h po(er% under #he provi%ion% o$ = >#he Se"uri#ie% Con#ra"#% (-e&ula#ion) !"#, 185C(49 o$ 185C), a% ma) be dele&a#ed #o i# b) #he Cen#ral ?overnmen#< (') lev)in& $ee% or o#her "har&e% $or "arr)in& ou# #he purpo%e% o$ #hi% %e"#ion< (l) "ondu"#in& re%ear"h $or #he above purpo%e%< =H(la) "allin& $rom or $urni%hin& #o an) %u"h a&en"ie%, a% ma) be %pe"i$ied b) #he Board, %u"h in$orma#ion a% ma) be "on%idered ne"e%%ar) b) i# $or #he e$$i"ien# di%"har&e o$ i#% $un"#ion%<I> (m) per$ormin& %u"h o#her $un"#ion% a% ma) be pre%"ribed =H(9!) Ei#hou# pre6udi"e #o #he provi%ion% "on#ained in %ub-%e"#ion (9), #he Board ma) #a'e mea%ure% #o under#a'e in%pe"#ion o$ an) boo', or re&i%#er, or o#her do"umen# or re"ord o$ an) li%#ed publi" "ompan) or a publi" "ompan) (no# bein& in#ermediarie% re$erred #o in %e"#ion 19) (hi"h in#end% #o &e# i#% %e"uri#ie% li%#ed on an) re"o&ni%ed %#o"' ex"han&e (here #he Board ha% rea%onable &round% #o believe #ha# %u"h "ompan) ha% been indul&in& in in%ider #radin& or $raudulen# and un$air #rade pra"#i"e% rela#in& #o %e"uri#ie% mar'e# I> =(:) @o#(i#h%#andin& an)#hin& "on#ained in an) o#her la( $or #he #ime bein& in $or"e (hile exer"i%in& #he po(er% under ="lau%e (i) or "lau%e (ia) o$ %ub-%e"#ion (9) or %ub-%e"#ion (9!)>, #he Board %hall have #he %ame po(er% a% are ve%#ed in a "ivil "our# under #he Code o$ Civil *ro"edure, 180B (5 o$ 180B),(hile #r)in& a %ui#, in re%pe"# o$ #he $ollo(in& ma##er%, namel) . (i) #he di%"over) and produ"#ion o$ boo'% o$ a""oun# and o#her do"umen#%, a# %u"h pla"e and %u"h #ime a% ma) be %pe"i$ied b) #he Board< (ii) %ummonin& and en$or"in& #he a##endan"e o$ per%on% and examinin& #hem on oa#h< (iii) in%pe"#ion o$ an) boo'%, re&i%#er% and o#her do"umen#% o$ an) per%on re$erred #o in %e"#ion 19, a# an) pla"e<> =(iv) in%pe"#ion o$ an) boo', or re&i%#er, or o#her do"umen# or re"ord o$ #he "ompan) re$erred #o in %ub-%e"#ion (9!)< (v) i%%uin& "ommi%%ion% $or #he examina#ion o$ (i#ne%%e% or do"umen#% > =(4) Ei#hou# pre6udi"e #o #he provi%ion% "on#ained in %ub-%e"#ion% (1), (9), (9!) and (:) and %e"#ion 11B, #he Board ma), b) an order, $or rea%on% #o be re"orded

in (ri#in&, in #he in#ere%#% o$ inve%#or% or %e"uri#ie% mar'e#, #a'e an) o$ #he $ollo(in& mea%ure%, ei#her pendin& inve%#i&a#ion or in5uir) or on "omple#ion o$ %u"h inve%#i&a#ion or in5uir), namel).(a) %u%pend #he #radin& o$ an) %e"uri#) in a re"o&niDed %#o"' ex"han&e< (b) re%#rain per%on% $rom a""e%%in& #he %e"uri#ie% mar'e# and prohibi# an) per%on a%%o"ia#ed (i#h %e"uri#ie% mar'e# #o bu), %ell or deal in %e"uri#ie%< (") %u%pend an) o$$i"e-bearer o$ an) %#o"' ex"han&e or %el$- re&ula#or) or&aniDa#ion $rom holdin& %u"h po%i#ion< (d)impound and re#ain #he pro"eed% or %e"uri#ie% in re%pe"# o$ an) #ran%a"#ion (hi"h i% under inve%#i&a#ion< (e)a##a"h, a$#er pa%%in& o$ an order on an appli"a#ion made $or approval b) #he 7udi"ial Ma&i%#ra#e o$ #he $ir%# "la%% havin& 6uri%di"#ion, $or a period no# ex"eedin& one mon#h, one or more ban' a""oun# or a""oun#% o$ an) in#ermediar) or an) per%on a%%o"ia#ed (i#h #he %e"uri#ie% mar'e# in an) manner involved in viola#ion o$ an) o$ #he provi%ion% o$ #hi% !"#, or #he rule% or #he re&ula#ion% made #hereunder. *rovided #ha# onl) #he ban' a""oun# or a""oun#% or an) #ran%a"#ion en#ered #herein, %o $ar a% i# rela#e% #o #he pro"eed% a"#uall) involved in viola#ion o$ an) o$ #he provi%ion% o$ #hi% !"#, or #he rule% or #he re&ula#ion% made #hereunder %hall be allo(ed #o be a##a"hed< ($)dire"# an) in#ermediar) or an) per%on a%%o"ia#ed (i#h #he %e"uri#ie% mar'e# in an) manner no# #o di%po%e o$ or aliena#e an a%%e# $ormin& par# o$ an) #ran%a"#ion (hi"h i% under inve%#i&a#ion. *rovided #ha# #he Board ma), (i#hou# pre6udi"e #o #he provi%ion% "on#ained in %ub-%e"#ion (9) or %ub-%e"#ion (9!), #a'e an) o$ #he mea%ure% %pe"i$ied in "lau%e (d) or "lau%e (e) or "lau%e ($), in re%pe"# o$ an) li%#ed publi" "ompan) or a publi" "ompan) (no# bein& in#ermediarie% re$erred #o in %e"#ion 19) (hi"h in#end% #o &e# i#% %e"uri#ie% li%#ed on an) re"o&niDed %#o"' ex"han&e (here #he Board ha% rea%onable &round% #o believe #ha# %u"h "ompan) ha% been indul&in& in in%ider #radin& or $raudulen# and un$air #rade pra"#i"e% rela#in& #o %e"uri#ie% mar'e#. *rovided $ur#her #ha# #he Board %hall, ei#her be$ore or a$#er pa%%in& %u"h order%, &ive an oppor#uni#) o$ hearin& #o %u"h in#ermediarie% or per%on% "on"erned > =Board #o re&ula#e or prohibi# i%%ue o$ pro%pe"#u%, o$$er do"umen# or adver#i%emen# %oli"i#in& mone) $or i%%ue o$ %e"uri#ie% 11! (1) Ei#hou# pre6udi"e #o #he provi%ion% o$ #he Companie% !"#, 185C(1 o$ 185C), #he Board ma), $or #he pro#e"#ion o$ inve%#or%, (a) %pe"i$), b) re&ula#ion% K (i) #he ma##er% rela#in& #o i%%ue o$ "api#al, #ran%$er o$ %e"uri#ie% and o#her ma##er% in"iden#al #here#o< and (ii) #he manner in (hi"h %u"h ma##er% %hall be di%"lo%ed b) #he "ompanie%< (b) b) &eneral or %pe"ial order% K (i) prohibi# an) "ompan) $rom i%%uin& pro%pe"#u%, an) o$$er do"umen#, or adver#i%emen# %oli"i#in& mone) $rom #he publi" $or #he i%%ue o$ %e"uri#ie%< (ii)%pe"i$) #he "ondi#ion% %ub6e"# #o (hi"h #he pro%pe"#u%, %u"h o$$er do"umen# or adver#i%emen#, i$ no# prohibi#ed, ma) be i%%ued

(9) Ei#hou# pre6udi"e #o #he provi%ion% o$ %e"#ion 91 o$ #he Se"uri#ie% Con#ra"#% (-e&ula#ion) !"#, 185C(49 o$ 185C), #he Board ma) %pe"i$) #he re5uiremen#% $or li%#in& and #ran%$er o$ %e"uri#ie% and o#her ma##er% in"iden#al #here#o ;>

7Collective Investment Scheme! 11!! (1) !n) %"heme or arran&emen# (hi"h %a#i%$ie% #he "ondi#ion% re$erred #o in %ub-%e"#ion (9) %hall be a "olle"#ive inve%#men# %"heme (9) !n) %"heme or arran&emen# made or o$$ered b) an) "ompan) under (hi"h,--(i) #he "on#ribu#ion%, or pa)men#% made b) #he inve%#or%, b) (ha#ever name "alled, are pooled and u#iliDed %olel) $or #he purpo%e% o$ #he %"heme or arran&emen#< (ii) #he "on#ribu#ion% or pa)men#% are made #o %u"h %"heme or arran&emen# b) #he inve%#or% (i#h a vie( #o re"eive pro$i#%, in"ome, produ"e or proper#), (he#her movable or immovable $rom %u"h %"heme or arran&emen#< (iii) #he proper#), "on#ribu#ion or inve%#men# $ormin& par# o$ %"heme or arran&emen#, (he#her iden#i$iable or no#, i% mana&ed on behal$ o$ #he inve%#or%< (iv) #he inve%#or% do no# have da) #o da) "on#rol over #he mana&emen# and opera#ion o$ #he %"heme or arran&emen# (:) @o#(i#h%#andin& an)#hin& "on#ained in %ub-%e"#ion (9), an) %"heme or arran&emen# K (i) made or o$$ered b) a "o-opera#ive %o"ie#) re&i%#ered under #he "o-opera#ive %o"ie#ie% !"#,1819(9 o$ 1819) or a %o"ie#) bein& a %o"ie#) re&i%#ered or deemed #o be re&i%#ered under an) la( rela#in& #o "oopera#ive %o"ie#ie% $or #he #ime bein& in $or"e in an) %#a#e< (ii)under (hi"h depo%i#% are a""ep#ed b) non-ban'in& $inan"ial "ompanie% a% de$ined in "lau%e ($) o$ %e"#ion 45-I o$ #he -e%erve Ban' o$ India !"#, 18:4(9 o$ 18:4)< (iii)bein& a "on#ra"# o$ in%uran"e #o (hi"h #he In%uran"e !"#,18:B(4 o$ 18:B), applie%< (iv)providin& $or an) %"heme, *en%ion S"heme or #he In%uran"e S"heme $ramed under #he Emplo)ee% *roviden# +und and Mi%"ellaneou% *rovi%ion% !"#, 1859(18 o$ 1859)< (v)under (hi"h depo%i#% are a""ep#ed under %e"#ion 5B! o$ #he Companie% !"#, 185C(1 o$ 185C)< (vi)under (hi"h depo%i#% are a""ep#ed b) a "ompan) de"lared a% a @idhi or a mu#ual bene$i# %o"ie#) under %e"#ion C90! o$ #he Companie% !"#, 185C(1 o$ 185C)< (vii)$allin& (i#hin #he meanin& o$ Chi# bu%ine%% a% de$ined in "lau%e (d) o$ %e"#ion 9 o$ #he Chi# +und !"#, 18B9(40 o$ 18B9)<

(viii)under (hi"h "on#ribu#ion% made are in #he na#ure o$ %ub%"rip#ion #o a mu#ual $und< %hall no# be a "olle"#ive inve%#men# %"heme > 7.ower to issue directions! 11B Save a% o#her(i%e provided in %e"#ion 11, i$ a$#er ma'in& or "au%in& #o be made an en5uir), #he Board i% %a#i%$ied #ha# i# i% ne"e%%ar),(i) in #he in#ere%# o$ inve%#or%, or orderl) developmen# o$ %e"uri#ie% mar'e#< or (ii) #o preven# #he a$$air% o$ an) in#ermediar) or o#her per%on% re$erred #o in %e"#ion 19 bein& "ondu"#ed in a manner de#rimen#al #o #he in#ere%# o$ inve%#or% or %e"uri#ie% mar'e#< or (iii) #o %e"ure #he proper mana&emen# o$ an) %u"h in#ermediar) or per%on, i# ma) i%%ue %u"h dire"#ion%,(a) #o an) per%on or "la%% o$ per%on% re$erred #o in %e"#ion 19, or a%%o"ia#ed (i#h #he %e"uri#ie% mar'e#< or (b) #o an) "ompan) in re%pe"# o$ ma##er% %pe"i$ied in %e"#ion 11!, a% ma) be appropria#e in #he in#ere%#% o$ inve%#or% in %e"uri#ie% and #he %e"uri#ie% mar'e#> =Investigation! 11C (1) Ehere #he Board ha% rea%onable &round #o believe #ha# K (a)#he #ran%a"#ion% in %e"uri#ie% are bein& deal# (i#h in a manner de#rimen#al #o #he inve%#or% or #he %e"uri#ie% mar'e#< or (b)an) in#ermediar) or an) per%on a%%o"ia#ed (i#h #he %e"uri#ie% mar'e# ha% viola#ed an) o$ #he provi%ion% o$ #hi% !"# or #he rule% or #he re&ula#ion% made or dire"#ion% i%%ued b) #he Board #hereunder, I# ma), a# an) #ime b) order in (ri#in&, dire"# an) per%on (herea$#er in #hi% %e"#ion re$erred #o a% #he Inve%#i&a#in& !u#hori#)) %pe"i$ied in #he order #o inve%#i&a#e #he a$$air% o$ %u"h in#ermediar) or per%on% a%%o"ia#ed (i#h #he %e"uri#ie% mar'e# and #o repor# #hereon #o #he Board (9) Ei#hou# pre6udi"e #o #he provi%ion% o$ %e"#ion% 9:5 #o 941 o$ #he Companie% !"#, 185C(1 o$ 185C), i# %hall be #he du#) o$ ever) mana&er, mana&in& dire"#or, o$$i"er and o#her emplo)ee o$ #he "ompan) and ever) in#ermediar) re$erred #o in %e"#ion 19 or ever) per%on a%%o"ia#ed (i#h #he %e"uri#ie% mar'e# #o pre%erve and #o produ"e #o #he Inve%#i&a#in& !u#hori#) or an) per%on au#hori%ed b) i# in #hi% behal$, all #he boo'%, re&i%#er%, o#her do"umen#% and re"ord o$, or rela#in& #o, #he "ompan) or, a% #he "a%e ma) be, o$ or rela#in& #o, #he in#ermediar) or %u"h per%on, (hi"h are in #heir "u%#od) or po(er (:) 0he Inve%#i&a#in& !u#hori#) ma) re5uire an) in#ermediar) or an) per%on a%%o"ia#ed (i#h %e"uri#ie% mar'e# in an) manner #o $urni%h %u"h in$orma#ion #o, or produ"e %u"h boo'%, or re&i%#er%, or o#her do"umen#%, or re"ord be$ore i# or an) per%on au#horiDed b) i# in #hi% behal$ a% i# ma) "on%ider ne"e%%ar) i$ #he $urni%hin& o$ %u"h in$orma#ion or #he produ"#ion o$ %u"h boo'%, or re&i%#er%, or o#her do"umen#%, or re"ord i% relevan# or ne"e%%ar) $or #he purpo%e% o$ i#% inve%#i&a#ion (4) 0he Inve%#i&a#in& !u#hori#) ma) 'eep in i#% "u%#od) an) boo'%, re&i%#er%, o#her do"umen#% and re"ord produ"ed under %ub-%e"#ion (9) or %ub-%e"#ion (:)

$or %ix mon#h% and #herea$#er %hall re#urn #he %ame #o an) in#ermediar) or an) per%on a%%o"ia#ed (i#h %e"uri#ie% mar'e# b) (hom or on (ho%e behal$ #he boo'%, re&i%#er%, o#her do"umen#% and re"ord are produ"ed. *rovided #ha# #he Inve%#i&a#in& !u#hori#) ma) "all $or an) boo', re&i%#er, o#her do"umen# and re"ord i$ #he) are needed a&ain. *rovided $ur#her #ha# i$ #he per%on on (ho%e behal$ #he boo'%, re&i%#er%, o#her do"umen#% and re"ord are produ"ed re5uire% "er#i$ied "opie% o$ #he boo'%, re&i%#er%, o#her do"umen#% and re"ord produ"ed be$ore #he Inve%#i&a#in& !u#hori#), i# %hall &ive "er#i$ied "opie% o$ %u"h boo'%, re&i%#er%, o#her do"umen#% and re"ord #o %u"h per%on or on (ho%e behal$ #he boo'%, re&i%#er%, o#her do"umen#% and re"ord (ere produ"ed (5) !n) per%on, dire"#ed #o ma'e an inve%#i&a#ion under %ub-%e"#ion (1),ma) examine on oa#h, an) mana&er, mana&in& dire"#or, o$$i"er and o#her emplo)ee o$ an) in#ermediar) or an) per%on a%%o"ia#ed (i#h %e"uri#ie% mar'e# in an) manner, in rela#ion #o #he a$$air% o$ hi% bu%ine%% and ma) admini%#er an oa#h a""ordin&l) and $or #ha# purpo%e ma) re5uire an) o$ #ho%e per%on% #o appear be$ore i# per%onall) (C) I$ an) per%on $ail% (i#hou# rea%onable "au%e or re$u%e% K (a) #o produ"e #o #he Inve%#i&a#in& !u#hori#) or an) per%on au#hori%ed b) i# in #hi% behal$ an) boo', re&i%#er, o#her do"umen# and re"ord (hi"h i# i% hi% du#) under %ub-%e"#ion (9) or %ub-%e"#ion (:) #o produ"e< or (b) #o $urni%h an) in$orma#ion (hi"h i% hi% du#) under %ub-%e"#ion (:) #o $urni%h< or (") #o appear be$ore #he Inve%#i&a#in& !u#hori#) per%onall) (hen re5uired #o do %o under %ub-%e"#ion (5) or #o an%(er an) 5ue%#ion (hi"h i% pu# #o him b) #he Inve%#i&a#in& !u#hori#) in pur%uan"e o$ #ha# %ub-%e"#ion< or (d) #o %i&n #he no#e% o$ an) examina#ion re$erred #o in %ub-%e"#ion (G), he %hall be puni%hable (i#h impri%onmen# $or a #erm (hi"h ma) ex#end #o one )ear, or (i#h $ine, (hi"h ma) ex#end #o one "rore rupee%, or (i#h bo#h, and al%o (i#h a $ur#her $ine (hi"h ma) ex#end #o $ive la'h rupee% $or ever) da) a$#er #he $ir%# durin& (hi"h #he $ailure or re$u%al "on#inue% (G) @o#e% o$ an) examina#ion under %ub-%e"#ion (5) %hall be #a'en do(n in (ri#in& and %hall be read over #o, or b), and %i&ned b), #he per%on examined, and ma) #herea$#er be u%ed in eviden"e a&ain%# him (B) Ehere in #he "our%e o$ inve%#i&a#ion, #he Inve%#i&a#in& !u#hori#) ha% rea%onable &round #o believe #ha# #he boo'%, re&i%#er%, o#her do"umen#% and re"ord o$, or rela#in& #o, an) in#ermediar) or an) per%on a%%o"ia#ed (i#h %e"uri#ie% mar'e# in an) manner, ma) be de%#ro)ed, mu#ila#ed, al#ered, $al%i$ied or %e"re#ed, #he Inve%#i&a#in& !u#hori#) ma) ma'e an appli"a#ion #o #he 7udi"ial Ma&i%#ra#e o$ #he $ir%# "la%% havin& 6uri%di"#ion $or an order $or #he %eiDure o$ %u"h boo'%, re&i%#er%, o#her do"umen#% and re"ord (8) !$#er "on%iderin& #he appli"a#ion and hearin& #he Inve%#i&a#in& !u#hori#), i$ ne"e%%ar), #he Ma&i%#ra#e ma), b) order, au#hori%e #he Inve%#i&a#in& !u#hori#) K (a) #o en#er, (i#h %u"h a%%i%#an"e, a% ma) be re5uired, #he pla"e or pla"e% (here %u"h boo'%, re&i%#er%, o#her do"umen#% and re"ord are 'ep#< (b) #o %ear"h #ha# pla"e or #ho%e pla"e% in #he manner %pe"i$ied in #he order< and

(" ) #o %eiDe boo'%, re&i%#er%, o#her do"umen#% and re"ord, i# "on%ider% ne"e%%ar) $or #he purpo%e% o$ #he inve%#i&a#ion. *rovided #ha# #he Ma&i%#ra#e %hall no# au#horiDe %eiDure o$ boo'%, re&i%#er%, o#her do"umen#% and re"ord, o$ an) li%#ed publi" "ompan) or a publi" "ompan) (no# bein& #he in#ermediarie% %pe"i$ied under %e"#ion 19) (hi"h in#end% #o &e# i#% %e"uri#ie% li%#ed on an) re"o&ni%ed %#o"' ex"han&e unle%% %u"h "ompan) indul&e% in in%ider #radin& or mar'e# manipula#ion (10) 0he Inve%#i&a#in& !u#hori#) %hall 'eep in i#% "u%#od) #he boo'%, re&i%#er%, o#her do"umen#% and re"ord %eiDed under #hi% %e"#ion $or %u"h period no# la#er #han #he "on"lu%ion o$ #he inve%#i&a#ion a% i# "on%ider% ne"e%%ar) and #herea$#er %hall re#urn #he %ame #o #he "ompan) or #he o#her bod) "orpora#e, or, a% #he "a%e ma) be, #o #he mana&in& dire"#or or #he mana&er or an) o#her per%on, $rom (ho%e "u%#od) or po(er #he) (ere %eiDed and in$orm #he Ma&i%#ra#e o$ %u"h re#urn< *rovided #ha# #he Inve%#i&a#in& !u#hori#) ma), be$ore re#urnin& %u"h boo'%, re&i%#er%, o#her do"umen#% and re"ord a% a$ore%aid, pla"e iden#i$i"a#ion mar'% on #hem or an) par# #hereo$ (11) Save a% o#her(i%e provided in #hi% %e"#ion, ever) %ear"h or %eiDure made under #hi% %e"#ion %hall be "arried ou# in a""ordan"e (i#h #he provi%ion% o$ #he Code o$ Criminal *ro"edure, 18G:(9 o$ 18G4), rela#in& #o %ear"he% or %eiDure% made under #ha# Code Cease and desist proceedings! 114 I$ #he Board $ind%, a$#er "au%in& an in5uir) #o be made, #ha# an) per%on ha% viola#ed, or i% li'el) #o viola#e, an) provi%ion% o$ #hi% !"#, or an) rule% or re&ula#ion% made #hereunder, i# ma) pa%% an order re5uirin& %u"h per%on #o "ea%e and de%i%# $rom "ommi##in& or "au%in& %u"h viola#ion. *rovided #ha# #he Board %hall no# pa%% %u"h order in re%pe"# o$ an) li%#ed publi" "ompan) or a publi" "ompan) (o#her #han #he in#ermediarie% %pe"i$ied under %e"#ion 19) (hi"h in#end% #o &e# i#% %e"uri#ie% li%#ed on an) re"o&niDed %#o"' ex"han&e unle%% #he Board ha% rea%onable &round% #o believe #ha# %u"h "ompan) ha% indul&ed in in%ider #radin& or mar'e# manipula#ion > CHA.#$R 4 R$'IS#RA#I)N C$R#I*ICA#$ Registration of stock 3rokers, su383rokers, share transfer agents, etc! 19 (1) @o %#o"'-bro'er, %ub- bro'er, %hare #ran%$er a&en#, ban'er #o an i%%ue, #ru%#ee o$ #ru%# deed, re&i%#rar #o an i%%ue, mer"han# ban'er, under(ri#er, por#$olio mana&er, inve%#men# advi%er and %u"h o#her in#ermediar) (ho ma) be a%%o"ia#ed (i#h %e"uri#ie% mar'e# %hall bu), %ell or deal in %e"uri#ie% ex"ep# under, and in a""ordan"e (i#h, #he "ondi#ion% o$ a "er#i$i"a#e o$ re&i%#ra#ion ob#ained $rom #he Board in a""ordan"e (i#h #he =re&ula#ion%> made under #hi% !"#. *rovided #ha# a per%on bu)in& or %ellin& %e"uri#ie% or o#her(i%e dealin& (i#h #he %e"uri#ie% mar'e# a% a %#o"'- bro'er, %ub-bro'er, %hare #ran%$er a&en#, ban'er #o an i%%ue, #ru%#ee o$ #ru%# deed, re&i%#rar #o an i%%ue, mer"han# ban'er,

under(ri#er, por#$olio mana&er, inve%#men# advi%er and %u"h o#her in#ermediar) (ho ma) be a%%o"ia#ed (i#h %e"uri#ie% mar'e# immedia#el) be$ore #he e%#abli%hmen# o$ #he Board $or (hi"h no re&i%#ra#ion "er#i$i"a#e (a% ne"e%%ar) prior #o %u"h e%#abli%hmen#, ma) "on#inue #o do %o $or a period o$ #hree mon#h% $rom %u"h e%#abli%hmen# or, i$ he ha% made an appli"a#ion $or %u"h re&i%#ra#ion (i#hin #he %aid period o$ #hree mon#h%, #ill #he di%po%al o$ %u"h appli"a#ion =*rovided $ur#her #ha# an) "er#i$i"a#e o$ re&i%#ra#ion, ob#ained immedia#el) be$ore #he "ommen"emen# o$ #he Se"uri#ie% 2a(% (!mendmen#) !"#, 1885, %hall be deemed #o have been ob#ained $rom #he Board in a""ordan"e (i#h #he re&ula#ion% providin& $or %u"h re&i%#ra#ion (1!) @o depo%i#or), =par#i"ipan#,> "u%#odian o$ %e"uri#ie%, $orei&n in%#i#u#ional inve%#or, "redi# ra#in& a&en") or an) o#her in#ermediar) a%%o"ia#ed (i#h #he %e"uri#ie% mar'e# a% #he Board ma) b) no#i$i"a#ion in #hi% behal$ %pe"i$), %hall bu) or %ell or deal in %e"uri#ie% ex"ep# under and in a""ordan"e (i#h #he "ondi#ion% o$ a "er#i$i"a#e o$ re&i%#ra#ion ob#ained $rom #he Board in a""ordan"e (i#h #he re&ula#ion% made under #hi% !"#. *rovided #ha# a per%on bu)in& or %ellin& %e"uri#ie% or o#her(i%e dealin& (i#h #he %e"uri#ie% mar'e# a% a depo%i#or), =par#i"ipan#,> "u%#odian o$ %e"uri#ie%, $orei&n in%#i#u#ional inve%#or or "redi# ra#in& a&en") immedia#el) be$ore #he "ommen"emen# o$ #he Se"uri#ie% 2a(% (!mendmen#) !"#, 1885, $or (hi"h no "er#i$i"a#e o$ re&i%#ra#ion (a% re5uired prior #o %u"h "ommen"emen#, ma) "on#inue #o bu) or %ell %e"uri#ie% or o#her(i%e deal (i#h #he %e"uri#ie% mar'e# un#il %u"h #ime re&ula#ion% are made under "lau%e (d) o$ %ub-%e"#ion (9) o$ %e"#ion :0 (1B) @o per%on %hall %pon%or or "au%e #o be %pon%ored or "arr) on or "au%e #o be "arried on an) ven#ure "api#al $und% or "olle"#ive inve%#men# %"heme% in"ludin& mu#ual $und%, unle%% he ob#ain% a "er#i$i"a#e o$ re&i%#ra#ion $rom #he Board in a""ordan"e (i#h #he re&ula#ion%. *rovided #ha# an) per%on %pon%orin& or "au%in& #o be %pon%ored, "arr)in& on or "au%in& #o be "arried on an) ven#ure "api#al $und% or "olle"#ive inve%#men# %"heme% opera#in& in #he %e"uri#ie% mar'e# immedia#el) be$ore #he "ommen"emen# o$ #he Se"uri#ie% 2a(% (!mendmen#) !"#, 1885, $or (hi"h no "er#i$i"a#e o$ re&i%#ra#ion (a% re5uired prior #o %u"h "ommen"emen#, ma) "on#inue #o opera#e #ill %u"h #ime re&ula#ion% are made under "lau%e (d) o$ %ub%e"#ion (9) o$ %e"#ion :0 > (9) Ever) appli"a#ion $or re&i%#ra#ion %hall be in %u"h manner and on pa)men# o$ %u"h $ee% a% ma) be de#ermined b) re&ula#ion% (:) 0he Board ma), b) order, %u%pend or "an"el a "er#i$i"a#e o$ re&i%#ra#ion in %u"h manner a% ma) be de#ermined b) re&ula#ion% *rovided #ha# no order under #hi% %ub-%e"#ion %hall be made unle%% #he per%on "on"erned ha% been &iven a rea%onable oppor#uni#) o$ bein& heard =CHA.#$R 4A .R)HI(I#I)N )* MANI. /A#I4$ AN% %$C$.#I4$ %$4IC$S, INSI%$R #RA%IN' AN% S (S#AN#IA/ AC9 ISI#)N )* S$C RI#I$S )R C)N#R)/

.rohi3ition of manipulative and deceptive devices, insider trading and su3stantial ac:uisition of securities or control! 19! @o per%on %hall dire"#l) or indire"#l) K (a) u%e or emplo), in "onne"#ion (i#h #he i%%ue, pur"ha%e or %ale o$ an) %e"uri#ie% li%#ed or propo%ed #o be li%#ed on a re"o&niDed %#o"' ex"han&e, an) manipula#ive or de"ep#ive devi"e or "on#rivan"e in "on#raven#ion o$ #he provi%ion% o$ #hi% !"# or #he rule% or #he re&ula#ion% made #hereunder< (b) emplo) an) devi"e, %"heme or ar#i$i"e #o de$raud in "onne"#ion (i#h i%%ue or dealin& in %e"uri#ie% (hi"h are li%#ed or propo%ed #o be li%#ed on a re"o&niDed %#o"' ex"han&e< (") en&a&e in an) a"#, pra"#i"e, "our%e o$ bu%ine%% (hi"h opera#e% or (ould opera#e a% $raud or de"ei# upon an) per%on, in "onne"#ion (i#h #he i%%ue, dealin& in %e"uri#ie% (hi"h are li%#ed or propo%ed #o be li%#ed on a re"o&niDed %#o"' ex"han&e, in "on#raven#ion o$ #he provi%ion% o$ #hi% !"# or #he rule% or #he re&ula#ion% made #hereunder< (d) en&a&e in in%ider #radin&< (e) deal in %e"uri#ie% (hile in po%%e%%ion o$ ma#erial or non-publi" in$orma#ion or "ommuni"a#e %u"h ma#erial or non-publi" in$orma#ion #o an) o#her per%on, in a manner (hi"h i% in "on#raven#ion o$ #he provi%ion% o$ #hi% !"# or #he rule% or #he re&ula#ion% made #hereunder< ($)a"5uire "on#rol o$ an) "ompan) or %e"uri#ie% more #han #he per"en#a&e o$ e5ui#) %hare "api#al o$ a "ompan) (ho%e %e"uri#ie% are li%#ed or propo%ed #o be li%#ed on a re"o&niDed %#o"' ex"han&e in "on#raven#ion o$ #he re&ula#ion% made under #hi% !"# > CHA.#$R 4I *INANC$, ACC) N#S AN% A %I# 'rants 35 the Central 'overnment! 1: 0he Cen#ral ?overnmen# ma), a$#er due appropria#ion made b) *arliamen# b) la( in #hi% behal$, ma'e #o #he Board &ran#% o$ %u"h %um% o$ mone) a% #ha# ?overnmen# ma) #hin' $i# $or bein& u#ili%ed $or #he purpo%e% o$ #hi% !"# *und! 14 (1) 0here %hall be "on%#i#u#ed a +und #o be "alled #he Se"uri#ie% and Ex"han&e Board o$ India ?eneral +und and #here %hall be "redi#ed #here#o(a) all &ran#%, $ee% and "har&e% re"eived b) #he Board under #hi% !"#< =LLL> =LLL> (b) all %um% re"eived b) #he Board $rom %u"h o#her %our"e% a% ma) be de"ided upon b) #he Cen#ral ?overnmen# (9) 0he +und %hall be applied $or mee#in& (a) #he %alarie%, allo(an"e% and o#her remunera#ion o$ member%, o$$i"er% and o#her emplo)ee% o$ #he Board< (b) #he expen%e% o$ #he Board in #he di%"har&e o$ i#% $un"#ion% under %e"#ion 11< (") #he expen%e% on ob6e"#% and $or purpo%e% au#hori%ed b) #hi% !"#

Accounts and Audit! 15 (1) 0he Board %hall main#ain proper a""oun#% and o#her relevan# re"ord% and prepare an annual %#a#emen# o$ a""oun#% in %u"h $orm a% ma) be pre%"ribed b) #he Cen#ral ?overnmen# in "on%ul#a#ion (i#h #he Comp#roller and !udi#or?eneral o$ India (9) 0he a""oun#% o$ #he Board %hall be audi#ed b) #he Comp#roller and !udi#or?eneral o$ India a# %u"h in#erval% a% ma) be %pe"i$ied b) him and an) expendi#ure in"urred in "onne"#ion (i#h %u"h audi# %hall be pa)able b) #he Board #o #he Comp#roller and !udi#or-?eneral o$ India (:) 0he Comp#roller and !udi#or-?eneral o$ India and an) o#her per%on appoin#ed b) him in "onne"#ion (i#h #he audi# o$ #he a""oun#% o$ #he Board %hall have #he %ame ri&h#% and privile&e% and au#hori#) in "onne"#ion (i#h %u"h audi# a% #he Comp#roller and !udi#or-?eneral &enerall) ha% in "onne"#ion (i#h #he audi# o$ #he ?overnmen# a""oun#% and, in par#i"ular, %hall have #he ri&h# #o demand #he produ"#ion o$ boo'%, a""oun#%, "onne"#ed vou"her% and o#her do"umen#% and paper% and #o in%pe"# an) o$ #he o$$i"e% o$ #he Board (4) 0he a""oun#% o$ #he Board a% "er#i$ied b) #he Comp#roller and !udi#or?eneral o$ India or an) o#her per%on appoin#ed b) him in #hi% behal$ #o&e#her (i#h #he audi# repor# #hereon %hall be $or(arded annuall) #o #he Cen#ral ?overnmen# and #ha# ?overnmen# %hall "au%e #he %ame #o be laid be$ore ea"h /ou%e o$ *arliamen# 7CHA.#$R 4IA .$NA/#I$S AN% A%; %ICA#I)N +<A! .enalt5 for failure to furnish information, return, etc!8 I$ an) per%on, (ho i% re5uired under #hi% !"# or an) rule% or re&ula#ion% made #hereunder,(a) #o $urni%h an) do"umen#, re#urn or repor# #o #he Board, $ail% #o $urni%h #he %ame, he %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%%>< (b) #o $ile an) re#urn or $urni%h an) in$orma#ion, boo'% or o#her do"umen#% (i#hin #he #ime %pe"i$ied #here$or in #he re&ula#ion%, $ail% #o $ile re#urn or $urni%h #he %ame (i#hin #he #ime %pe"i$ied #here$or in #he re&ula#ion%, he %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%%>< (") #o main#ain boo'% o$ a""oun#% or re"ord%, $ail% #o main#ain #he %ame, he %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%% > +<(! .enalt5 for failure 35 an5 person to enter into an agreement with clients!8 I$ an) per%on, (ho i% re&i%#ered a% an in#ermediar) and i% re5uired under #hi% !"# or an) rule% or re&ula#ion% made #hereunder #o en#er in#o an a&reemen# (i#h hi% "lien#, $ail% #o en#er in#o %u"h a&reemen#, he %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%% >

+<C!.enalt5 for failure to redress investors= grievances!8 =I$ an) li%#ed "ompan) or an) per%on (ho i% re&i%#ered a% an in#ermediar), a$#er havin& been "alled upon b) #he Board in (ri#in&, #o redre%% #he &rievan"e% o$ inve%#or%, $ail% #o redre%% %u"h &rievan"e% (i#hin #he #ime %pe"i$ied b) #he Board, %u"h "ompan) or in#ermediar) %hall be liable #o a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%% > +<%!.enalt5 for certain defaults in case of mutual funds!8I$ an) per%on, (ho i% (a) re5uired under #hi% !"# or an) rule% or re&ula#ion% made #hereunder #o ob#ain a "er#i$i"a#e o$ re&i%#ra#ion $rom #he Board $or %pon%orin& or "arr)in& on an) "olle"#ive inve%#men# %"heme, in"ludin& mu#ual $und%, %pon%or% or "arrie% on an) "olle"#ive inve%#men# %"heme, in"ludin& mu#ual $und%, (i#hou# ob#ainin& %u"h "er#i$i"a#e o$ re&i%#ra#ion, he %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h he %pon%or% or "arrie% on an) %u"h "olle"#ive inve%#men# %"heme in"ludin& mu#ual $und%, or one "rore rupee%, (hi"hever i% le%% > (b) re&i%#ered (i#h #he Board a% a "olle"#ive inve%#men# %"heme, in"ludin& mu#ual $und%, $or %pon%orin& or "arr)in& on an) inve%#men# %"heme, $ail% #o "ompl) (i#h #he #erm% and "ondi#ion% o$ "er#i$i"a#e o$ re&i%#ra#ion, he %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%% > (") re&i%#ered (i#h #he Board a% a "olle"#ive inve%#men# %"heme, in"ludin& mu#ual $und%, $ail% #o ma'e an appli"a#ion $or li%#in& o$ i#% %"heme% a% provided $or in #he re&ula#ion% &overnin& %u"h li%#in&, he %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee% , (hi"hever i% le%% > (d) re&i%#ered a% a "olle"#ive inve%#men# %"heme in"ludin& mu#ual $und% $ail% #o de%pa#"h uni# "er#i$i"a#e% o$ an) %"heme in #he manner provided in #he re&ula#ion &overnin& %u"h de%pa#"h, he %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%% > (e) re&i%#ered a% a "olle"#ive inve%#men# %"heme, in"ludin& mu#ual $und%, $ail% #o re$und #he appli"a#ion monie% paid b) #he inve%#or% (i#hin #he period %pe"i$ied in #he re&ula#ion%, he %hall be liable #o pa) =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%% > ($) re&i%#ered a% a "olle"#ive inve%#men# %"heme, in"ludin& mu#ual $und%, $ail% #o inve%# mone) "olle"#ed b) %u"h "olle"#ive inve%#men# %"heme% in #he manner or (i#hin #he period %pe"i$ied in #he re&ula#ion%, he %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%% > +<$! .enalt5 for failure to o3serve rules and regulations 35 an asset management compan5!8 Ehere an) a%%e# mana&emen# "ompan) o$ a mu#ual $und re&i%#ered under #hi% !"#, $ail% #o "ompl) (i#h an) o$ #he re&ula#ion% providin& $or re%#ri"#ion% on #he a"#ivi#ie% o$ #he a%%e# mana&emen# "ompanie%, %u"h a%%e# mana&emen# "ompan) %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%% >

+<*! .enalt5 for failure in case of stock 3rokers!8 I$ an) per%on, (ho i% re&i%#ered a% a %#o"' bro'er under #hi% !"#, (a) $ail% #o i%%ue "on#ra"# no#e% in #he $orm and in #he manner %pe"i$ied b) #he %#o"' ex"han&e o$ (hi"h %u"h bro'er i% a member, he %hall be liable #o a penal#) no# ex"eedin& $ive #ime% #he amoun# $or (hi"h #he "on#ra"# no#e (a% re5uired #o be i%%ued b) #ha# bro'er< (b) $ail% #o deliver an) %e"uri#) or $ail% #o ma'e pa)men# o$ #he amoun# due #o #he inve%#or in #he manner (i#hin #he period %pe"i$ied in #he re&ula#ion%, he %hall be liable #o =a penal#) o$ one la'h rupee% $or ea"h da) durin& (hi"h %u"h $ailure "on#inue% or one "rore rupee%, (hi"hever i% le%% > (") "har&e% an amoun# o$ bro'era&e (hi"h i% in ex"e%% o$ #he bro'era&e %pe"i$ied in #he re&ula#ion%, he %hall be liable #o =a penal#) o$ one la'h rupee%> or $ive #ime% #he amoun# o$ bro'era&e "har&ed in ex"e%% o$ #he %pe"i$ied bro'era&e, (hi"hever i% hi&her +<'!.enalt5 for insider trading!8 I$ an) in%ider (ho,(i) ei#her on hi% o(n behal$ or on behal$ o$ an) o#her per%on, deal% in %e"uri#ie% o$ a bod) "orpora#e li%#ed on an) %#o"' ex"han&e on #he ba%i% o$ an) unpubli%hed pri"e %en%i#ive in$orma#ion< or (ii) "ommuni"a#e% an) unpubli%hed pri"e- %en%i#ive in$orma#ion #o an) per%on, (i#h or (i#hou# hi% re5ue%# $or %u"h in$orma#ion ex"ep# a% re5uired in #he ordinar) "our%e o$ bu%ine%% or under an) la(< or (iii) "oun%el%, or pro"ure% $or an) o#her per%on #o deal in an) %e"uri#ie% o$ an) bod) "orpora#e on #he ba%i% o$ unpubli%hed pri"e-%en%i#ive in$orma#ion, %hall be liable #o a penal#) =o$ #(en#)-$ive "rore rupee% or #hree #ime% #he amoun# o$ pro$i#% made ou# o$ in%ider #radin&, (hi"hever i% hi&her > +<H!.enalt5 for non8disclosure of ac:uisition of shares and take8 overs!8I$ an) per%on, (ho i% re5uired under #hi% !"# or an) rule% or re&ula#ion% made #hereunder, $ail% #o,(i) di%"lo%e #he a&&re&a#e o$ hi% %hareholdin& in #he bod) "orpora#e be$ore he a"5uire% an) %hare% o$ #ha# bod) "orpora#e< or (ii) ma'e a publi" announ"emen# #o a"5uire %hare% a# a minimum pri"e< =(iii) ma'e a publi" o$$er b) %endin& le##er o$ o$$er #o #he %hareholder% o$ #he "on"erned "ompan)< or (iv) ma'e pa)men# o$ "on%idera#ion #o #he %hareholder% (ho %old #heir %hare% pur%uan# #o le##er o$ o$$er > he %hall be liable #o a penal#) = #(en#)-$ive "rore rupee% or #hree #ime% #he amoun# o$ pro$i#% made ou# o$ %u"h $ailure, (hi"hever i% hi&her > 7+<HA!.enalt5 for fraudulent and unfair trade practices!8 I$ an) per%on indul&e% in $raudulen# and un$air #rade pra"#i"e% rela#in& #o %e"uri#ie%, he %hall be liable #o a penal#) o$ #(en#)-$ive "rore rupee% or #hree #ime% #he amoun# o$ pro$i#% made ou# o$ %u"h pra"#i"e%, (hi"hever i% hi&her +<H(!.enalt5 for contravention where no separate penalt5 has 3een provided!8 Ehoever $ail% #o "ompl) (i#h an) provi%ion o$ #hi% !"#, #he rule% or #he re&ula#ion% made or dire"#ion% i%%ued b) #he Board #hereunder $or (hi"h no %epara#e penal#) ha% been provided, %hall be liable #o a penal#) (hi"h ma)

ex#end

#o

one

"rore

rupee% >

+<I!.ower to ad>udicate!8 (1) +or #he purpo%e o$ ad6ud&in& under %e"#ion% 15!, 15B, 15C, 154, 15E, 15+, 15?, =15/, 15/! and 15/B> ,#he Board %hall appoin# an) o$ i#% o$$i"er% no# belo( #he ran' o$ a 4ivi%ion Chie$ #o be an ad6udi"a#in& o$$i"er $or holdin& an in5uir) in #he pre%"ribed manner a$#er &ivin& an) per%on "on"erned a rea%onable oppor#uni#) o$ bein& heard $or #he purpo%e o$ impo%in& an) penal#) (9) Ehile holdin& an in5uir), #he ad6udi"a#in& o$$i"er %hall have po(er #o %ummon and en$or"e #he a##endan"e o$ an) per%on a"5uain#ed (i#h #he $a"#% and "ir"um%#an"e% o$ #he "a%e #o &ive eviden"e or #o produ"e an) do"umen# (hi"h in #he opinion o$ #he ad6udi"a#in& o$$i"er, ma) be u%e$ul $or or relevan# #o #he %ub6e"# ma##er o$ #he in5uir) and i$, on %u"h in5uir), he i% %a#i%$ied #ha# #he per%on ha% $ailed #o "ompl) (i#h #he provi%ion% o$ an) o$ #he %e"#ion% %pe"i$ied in %ub-%e"#ion (1), he ma) impo%e %u"h penal#) a% he #hin'% $i# in a""ordan"e (i#h #he provi%ion% o$ an) o$ #ho%e %e"#ion% +<;!*actors to 3e taken into account 35 the ad>udicating officer!8Ehile ad6ud&in& 5uan#um o$ penal#) under %e"#ion 15, #he ad6udi"a#in& o$$i"er %hall have due re&ard #o #he $ollo(in& $a"#or%, namel). (a) #he amoun# o$ di%propor#iona#e &ain or un$air advan#a&e, (herever 5uan#i$iable, made a% a re%ul# o$ #he de$aul#< (b) #he amoun# o$ lo%% "au%ed #o an inve%#or or &roup o$ inve%#or% a% a re%ul# o$ #he de$aul#< (") #he repe#i#ive na#ure o$ #he de$aul# 7+<;A!Crediting sums reali?ed 35 wa5 of penalties to Consolidated *und of India!8 !ll %um% reali%ed b) (a) o$ penal#ie% under #hi% !"# %hall be "redi#ed #o #he Con%olida#ed +und o$ India > CHA.#$R 4I( $S#A(/ISHM$N#, ; RIS%IC#I)N, A #H)RI#0 AN% .R)C$% R$ )* A..$//A#$ #RI( NA/ +<"!$sta3lishment of Securities Appellate #ri3unals!8 (1) 0he Cen#ral ?overnmen# %hall, b) no#i$i"a#ion, e%#abli%h one or more !ppella#e 0ribunal% #o be 'no(n a% #he Se"uri#ie% !ppella#e 0ribunal #o exer"i%e #he 6uri%di"#ion, po(er% and au#hori#) "on$erred on %u"h 0ribunal b) or under #hi% !"# =or an) o#her la( $or #he #ime bein& in $or"e > (9) 0he Cen#ral ?overnmen# %hall al%o %pe"i$) in #he no#i$i"a#ion re$erred #o in %ub-%e"#ion (1) #he ma##er% and pla"e% in rela#ion #o (hi"h #he Se"uri#ie% !ppella#e 0ribunal ma) exer"i%e 6uri%di"#ion =+</!Composition of Securities Appellate #ri3unal! ! Se"uri#ie% !ppella#e 0ribunal %hall "on%i%# o$ a *re%idin& 1$$i"er and #(o o#her Member%, #o be appoin#ed, b) no#i$i"a#ion, b) #he Cen#ral ?overnmen#. *rovided #ha# #he Se"uri#ie% !ppella#e 0ribunal, "on%i%#in& o$ one per%on onl), e%#abli%hed be$ore #he "ommen"emen# o$ #he Se"uri#ie% and Ex"han&e Board o$

India (!mendmen#) !"#, 9009, %hall "on#inue #o exer"i%e #he 6uri%di"#ion, po(er% and au#hori#) "on$erred on i# b) or under #hi% !"# or an) o#her la( $or #he #ime bein& in $or"e #ill #(o o#her Member% are appoin#ed under #hi% %e"#ion +<M!9ualification for appointment as .residing )fficer or Mem3er of the Securities Appellate #ri3unal! (1) ! per%on %hall no# be 5uali$ied $or appoin#men# a% #he *re%idin& 1$$i"er o$ a Se"uri#ie% !ppella#e 0ribunal unle%% he i% a %i##in& or re#ired 7ud&e o$ #he Supreme Cour# or a %i##in& or re#ired Chie$ 7u%#i"e o$ a /i&h Cour#. *rovided #ha# #he *re%idin& 1$$i"er o$ #he Se"uri#ie% !ppella#e 0ribunal %hall be appoin#ed b) #he Cen#ral ?overnmen# in "on%ul#a#ion (i#h #he Chie$ 7u%#i"e o$ India or hi% nominee (9) ! per%on %hall no# be 5uali$ied $or appoin#men# a% Member o$ a Se"uri#ie% !ppella#e 0ribunal unle%% he i% a per%on o$ abili#), in#e&ri#) and %#andin& (ho ha% %ho(n "apa"i#) in dealin& (i#h problem% rela#in& #o %e"uri#ie% mar'e# and ha% 5uali$i"a#ion and experien"e o$ "orpora#e la(, %e"uri#ie% la(%, $inan"e, e"onomi"% or a""oun#an"). *rovided #ha# a member o$ #he Board or an) per%on holdin& a po%# oa# %enior mana&emen# level e5uivalen# #o Exe"u#ive 4ire"#or in #he Board %hall no# be appoin#ed a% *re%idin& 1$$i"er or Member o$ a Se"uri#ie% !ppella#e 0ribunal durin& hi% %ervi"e or #enure a% %u"h (i#h #he Board or (i#hin #(o )ear% $rom #he da#e on (hi"h he "ea%e% #o hold o$$i"e a% %u"h in #he Board > =+<N! #enure of office of .residing )fficer and other Mem3ers of Securities Appellate #ri3unal! 0he *re%idin& 1$$i"er and ever) o#her Member o$ a Se"uri#ie% !ppella#e 0ribunal %hall hold o$$i"e $or a #erm% o$ $ive )ear% $rom #he da#e on (hi"h he en#er% upon hi% o$$i"e and %hall be eli&ible $or re-appoin#men#. *rovided #ha# no per%on %hall hold o$$i"e a% #he *re%idin& 1$$i"er o$ #he Se"uri#ie% !ppella#e 0ribunal a$#er he ha% a##ained #he a&e o$ %ix#)-ei&h# )ear%. *rovided $ur#her #ha# no per%on %hall hold o$$i"e a% Member o$ #he Se"uri#ie% !ppella#e 0ribunal a$#er he ha% a##ained #he a&e o$ %ix#)-#(o )ear% > +<)!Salar5 and allowances and other terms and conditions of service of .residing )fficers!8 0he %alar) and allo(an"e% pa)able #o and #he o#her #erm% and "ondi#ion% o$ %ervi"e (in"ludin& pen%ion, &ra#ui#) and o#her re#iremen# bene$i#%) o$ #he =*re%idin& 1$$i"er and an) o#her Member o$ a Se"uri#ie% !ppella#e 0ribunal> %hall be %u"h a% ma) be pre%"ribed. *rovided #ha# nei#her #he %alar) and allo(an"e% nor #he o#her #erm% and "ondi#ion% o$ %ervi"e o$ #he =*re%idin& 1$$i"er and o#her Member% o$ a Se"uri#ie% !ppella#e 0ribunal> %hall be varied #o #heir di%advan#a&e a$#er appoin#men# +<.!*illing up of vacancies! - I$, $or rea%on o#her #han #emporar) ab%en"e< an) va"an") o""ur% in =#he o$$i"e o$ #he *re%idin& 1$$i"er or an) o#her Member> o$ a Se"uri#ie% !ppella#e 0ribunal, #hen #he Cen#ral ?overnmen# %hall appoin# ano#her per%on in a""ordan"e (i#h #he provi%ion% o$ #hi% !"# #o $ill #he va"an") and, #he pro"eedin&% ma) be "on#inued be$ore #he Se"uri#ie% !ppella#e 0ribunal $rom #he %#a&e a# (hi"h #he va"an") i% $illed

+<9!Resignation and removal! - (1) =0he *re%idin& 1$$i"er or an) o#her Member o$ a Se"uri#ie% !ppella#e 0ribunal> ma), b) no#i"e in (ri#in& under hi% hand addre%%ed #o #he Cen#ral ?overnmen#, re%i&n hi% o$$i"e. *rovided #ha# =#he *re%idin& 1$$i"er or an) o#her Member> %hall, unle%% he i% permi##ed b) #he Cen#ral ?overnmen# #o relin5ui%h hi% o$$i"e %ooner, "on#inue #o hold o$$i"e, un#il #he expir) o$ #hree mon#h% $rom #he da#e o$ re"eip# o$ %u"h no#i"e or un#il a per%on dul) appoin#ed a% hi% %u""e%%or en#er% upon hi% o$$i"e or un#il #he expir) o$ hi% #erm o$ o$$i"e, (hi"hever i% #he earlie%# (9) 0he =*re%idin& 1$$i"er or an) o#her Member> o$ a Se"uri#ie% !ppella#e 0ribunal %hall no# be removed $rom hi% o$$i"e ex"ep# b) an order b) #he Cen#ral ?overnmen# on #he &round o$ proved mi%behaviour or in"apa"i#) a$#er in5uir) made b) a 7ud&e o$ #he Supreme Cour#, in (hi"h #he =*re%idin& 1$$i"er or an) o#her Member> "on"erned ha% been in$ormed o$ #he "har&e% a&ain%# him and &iven a rea%onable oppor#uni#) o$ bein& heard in re%pe"# o$ #he%e "har&e% (:) 0he Cen#ral ?overnmen# ma), b) rule%, re&ula#e #he pro"edure $or #he inve%#i&a#ion o$ mi%behavior or in"apa"i#) o$ #he =#he *re%idin& 1$$i"er or an) o#her Member> +<R!)rders constituting Appellate #ri3unal to 3e final and not to invalidate its proceedings! -@o order o$ #he Cen#ral ?overnmen# appoin#in& an) per%on a% #he =*re%idin& 1$$i"er or a Member> o$ a Se"uri#ie% !ppella#e 0ribunal %hall be "alled in 5ue%#ion in an) manner, and no a"# or pro"eedin& be$ore a Se"uri#ie% !ppella#e 0ribunal %hall be "alled in 5ue%#ion in an) manner on #he &round merel) o$ an) de$e"# in #he "on%#i#u#ion o$ a Se"uri#ie% !ppella#e 0ribunal +<S!Staff of the Securities Appellate #ri3unal! - (1) 0he Cen#ral ?overnmen# %hall provide #he Se"uri#ie% !ppella#e 0ribunal (i#h %u"h o$$i"er% and emplo)ee% a% #ha# ?overnmen# ma) #hin' $i# (9) 0he o$$i"er% and emplo)ee% o$ #he Se"uri#ie% !ppella#e 0ribunal %hall di%"har&e #heir $un"#ion% under &eneral %uperin#enden"e o$ #he *re%idin& 1$$i"er (:) 0he %alarie% and allo(an"e% and o#her "ondi#ion% o$ %ervi"e o$ #he o$$i"er% and emplo)ee% o$ #he Se"uri#ie% !ppella#e 0ribunal %hall be %u"h a% ma) be pre%"ribed +<#!Appeal to the Securities Appellate #ri3unal! K =(1) Save a% provided in %ub-%e"#ion (9), an) per%on a&&rieved,(a) b) an order o$ #he Board made, on and a$#er #he "ommen"emen# o$ #he Se"uri#ie% 2a(% (Se"ond !mendmen#) !"#, 1888, under #hi% !"#, or #he rule% or re&ula#ion% made #hereunder< or (b) b) an order made b) an ad6udi"a#in& o$$i"er under #hi% !"#, ma) pre$er an appeal #o a Se"uri#ie% !ppella#e 0ribunal havin& 6uri%di"#ion in #he ma##er (9) @o appeal %hall lie #o #he Se"uri#ie% !ppella#e 0ribunal $rom an order madeMM (a) b) #he Board on and a$#er #he "ommen"emen# o$ #he Se"uri#ie% 2a(% (Se"ond !mendmen#) !"#, 1888< (b) b) an ad6udi"a#in& o$$i"er, (i#h #he "on%en# o$ #he par#ie% >

(:) Ever) appeal under %ub-%e"#ion (1) %hall be $iled (i#hin a period o$ $or#)-$ive da)% $rom #he da#e on (hi"h =a "op) o$ #he order made b) #he Board or #he ad6udi"a#in& o$$i"er, a% #he "a%e ma) be,>i% re"eived b) him and i# %hall be in %u"h $orm and be a""ompanied b) %u"h $ee a% ma) be pre%"ribed. *rovided #ha# #he Se"uri#ie% !ppella#e 0ribunal ma) en#er#ain an appeal a$#er #he expir) o$ #he %aid period o$ $or#)-$ive da)% i$ i# i% %a#i%$ied #ha# #here (a% %u$$i"ien# "au%e $or no# $ilin& i# (i#hin #ha# period (4) 1n re"eip# o$ an appeal under %ub-%e"#ion (1), #he Se"uri#ie% !ppella#e 0ribunal ma), a$#er &ivin& #he par#ie% #o #he appeal, an oppor#uni#) o$ bein& heard, pa%% %u"h order% #hereon a% i# #hin'% $i#, "on$irmin&, modi$)in& or %e##in& a%ide #he order appealed a&ain%# (5) 0he Se"uri#ie% !ppella#e 0ribunal %hall %end a "op) o$ ever) order made b) i# #o #he =Board, #he par#ie%> #o #he appeal and #o #he "on"erned !d6udi"a#in& 1$$i"er (C) 0he appeal $iled be$ore #he Se"uri#ie% !ppella#e 0ribunal under %ub-%e"#ion (1) %hall be deal# (i#h b) i# a% expedi#iou%l) a% po%%ible and endeavour %hall be made b) i# #o di%po%e o$ #he appeal $inall) (i#hin %ix mon#h% $rom #he da#e o$ re"eip# o$ #he appeal +< !.rocedure and powers of the Securities Appellate #ri3unal! - (1) 0he Se"uri#ie% !ppella#e 0ribunal %hall no# be bound b) #he pro"edure laid do(n b) #he Code o$ Civil *ro"edure, 180B(5 o$ 180B), bu# %hall be &uided b) #he prin"iple% o$ na#ural 6u%#i"e and, %ub6e"# #o #he o#her provi%ion% o$ #hi% !"# and o$ an) rule%, #he Se"uri#ie% !ppella#e 0ribunal %hall have po(er% #o re&ula#e #heir o(n pro"edure in"ludin& #he pla"e% a# (hi"h #he) %hall have #heir %i##in&% (9) 0he Se"uri#ie% !ppella#e 0ribunal %hall have, $or #he purpo%e% o$ di%"har&in& #heir $un"#ion% under #hi% !"#, #he %ame po(er% a% are ve%#ed in a "ivil "our# under #he Code o$ Civil *ro"edure, 180B(5 o$ 180B), (hile #r)in& a %ui#, in re%pe"# o$ #he $ollo(in& ma##er%, namel). (a) %ummonin& and en$or"in& #he a##endan"e o$ an) per%on and examinin& him on oa#h< (b) re5uirin& #he di%"over) and produ"#ion o$ do"umen#%< (") re"eivin& eviden"e on a$$idavi#%< (d) i%%uin& "ommi%%ion% $or #he examina#ion o$ (i#ne%%e% or do"umen#%< (e) revie(in& i#% de"i%ion%< ($) di%mi%%in& an appli"a#ion $or de$aul# or de"idin& i# e# parte< (&) %e##in& a%ide an) order o$ di%mi%%al o$ an) appli"a#ion $or de$aul# or an) order pa%%ed b) i# e# parte< (h) an) o#her ma##er (hi"h ma) be pre%"ribed (:) Ever) pro"eedin& be$ore #he Se"uri#ie% !ppella#e 0ribunal %hall be deemed #o be a 6udi"ial pro"eedin& (i#hin #he meanin& o$ %e"#ion% 18: and 99B, and $or #he purpo%e% o$ %e"#ion 18C o$ #he Indian *enal Code(45 o$ 1BC0), and #he Se"uri#ie% !ppella#e 0ribunal %hall be deemed #o be a "ivil "our# $or all #he purpo%e% o$ %e"#ion 185 and Chap#er NN3I o$ #he Code o$ Criminal *ro"edure, 18G:(9 o$ 18G4)

7+<4!Right to legal representation! - 0he appellan# ma) ei#her appear in per%on or au#hori%e one or more "har#ered a""oun#an#% or "ompan) %e"re#arie% or "o%# a""oun#an#% or le&al pra"#i#ioner% or an) o$ i#% o$$i"er% #o pre%en# hi% or i#% "a%e be$ore #he Se"uri#ie% !ppella#e 0ribunal Explana#ion.- +or #he purpo%e% o$ #hi% %e"#ion,-(a) ;"har#ered a""oun#an#; mean% a "har#ered a""oun#an# a% de$ined in "lau%e(b) o$ %ub-%e"#ion(1) o$ %e"#ion 9 o$ #he Char#ered !""oun#an#% !"#, 1848(:B o$ 1848) and (ho ha% ob#ained a "er#i$i"a#e o$ pra"#i"e under %ub-%e"#ion (1) o$ %e"#ion C o$ #ha# !"#< (b) ;"ompan) %e"re#ar); mean% a "ompan) %e"re#ar) a% de$ined in "lau%e(") o$ %ub-%e"#ion(1) o$ %e"#ion 9 o$ #he Compan) Se"re#arie% !"#,18B0(5C o$ 18B0) and (ho ha% ob#ained a "er#i$i"a#e o$ pra"#i"e under %ub-%e"#ion (1) o$ %e"#ion C o$ #ha# !"#< (") ; "o%# a""oun#an#; mean% a "o%# a""oun#an# a% de$ined in "lau%e(b) o$ %ub%e"#ion(1) o$ %e"#ion 9 o$ #he Co%# and Eor'% !""oun#an#% !"#, 1858(9: o$ 1858) and (ho ha% ob#ained a "er#i$i"a#e o$ pra"#i"e under %ub-%e"#ion (1) o$ %e"#ion C o$ #ha# !"#< (d) ;le&al pra"#i#ioner; mean% an advo"a#e, va'il or an) a##orne) o$ an) /i&h Cour#, and in"lude% a pleader in pra"#i"e > +<6!/imitation! -0he provi%ion% o$ #he 2imi#a#ion !"#, 18C: (:C o$ 18C:), %hall, a% $ar a% ma) be, appl) #o an appeal made #o a Se"uri#ie% !ppella#e 0ribunal =+<&!.residing )fficer, Mem3ers and staff of Securities Appellate #ri3unals to 3e pu3lic servants! - 0he *re%idin& 1$$i"er, Member% and o#her o$$i"er% and emplo)ee% o$ a Se"uri#ie% !ppella#e 0ribunal %hall be deemed #o be publi" %ervan#% (i#hin #he meanin& o$ %e"#ion 91 o$ #he Indian *enal Code(45 o$ 1BC0) > +<0!Civil Court not to have >urisdiction! 8 @o "ivil "our# %hall have 6uri%di"#ion #o en#er#ain an) %ui# or pro"eedin& in re%pe"# o$ an) ma##er (hi"h an !d6udi"a#in& 1$$i"er appoin#ed under #hi% !"# or a Se"uri#ie% !ppella#e 0ribunal "on%#i#u#ed under #hi% !"# i% empo(ered b) or under #hi% !"# #o de#ermine and no in6un"#ion %hall be &ran#ed b) an) "our# or o#her au#hori#) in re%pe"# o$ an) a"#ion #a'en or #o be #a'en in pur%uan"e o$ an) po(er "on$erred b) or under #hi% !"# =+<@!Appeal to Supreme Court!- !n) per%on a&&rieved b) an) de"i%ion or order o$ #he Se"uri#ie% !ppella#e 0ribunal ma) $ile an appeal #o #he Supreme Cour# (i#hin %ix#) da)% $rom #he da#e o$ "ommuni"a#ion o$ #he de"i%ion or order o$ #he Se"uri#ie% !ppella#e 0ribunal #o him on an) 5ue%#ion o$ la( ari%in& ou# o$ %u"h order. *rovided #ha# #he Supreme Cour# ma), i$ i# i% %a#i%$ied #ha# #he appli"an# (a% preven#ed b) %u$$i"ien# "au%e $rom $ilin& #he appeal (i#hin #he %aid period, allo( i# #o be $iled (i#hin a $ur#her period no# ex"eedin& %ix#) da)% > CHA.#$R 4II MISC$//AN$) S .ower of Central 'overnment to issue directions! 1C (1) Ei#hou# pre6udi"e #o #he $ore&oin& provi%ion% o$ =#hi% !"# or #he 4epo%i#orie% !"#, 188C>, #he Board %hall, in exer"i%e o$ i#% po(er% or #he

per$orman"e o$ i#% $un"#ion% under #hi% !"#, be bound b) %u"h dire"#ion% on 5ue%#ion% o$ poli") a% #he Cen#ral ?overnmen# ma) &ive in (ri#in& #o i# $rom #ime #o #ime. *rovided #ha# #he Board %hall, a% $ar a% pra"#i"able, be &iven an oppor#uni#) #o expre%% i#% vie(% be$ore an) dire"#ion i% &iven under #hi% %ub-%e"#ion (9) 0he de"i%ion o$ #he Cen#ral ?overnmen# (he#her a 5ue%#ion i% one o$ poli") or no# %hall be $inal .ower of Central 'overnment to supersede the (oard! 1G (1) I$ a# an) #ime #he Cen#ral ?overnmen# i% o$ opinion(a) #ha# on a""oun# o$ &rave emer&en"), #he Board i% unable #o di%"har&e #he $un"#ion% and du#ie% impo%ed on i# b) or under #he provi%ion% o$ #hi% !"#< or (b) #ha# #he Board ha% per%i%#en#l) made de$aul# in "ompl)in& (i#h an) dire"#ion i%%ued b) #he Cen#ral ?overnmen# under #hi% !"# or in #he di%"har&e o$ #he $un"#ion% and du#ie% impo%ed on i# b) or under #he provi%ion% o$ #hi% !"# and a% a re%ul# o$ %u"h de$aul# #he $inan"ial po%i#ion o$ #he Board or #he admini%#ra#ion o$ #he Board ha% de#eriora#ed< or (") #ha# "ir"um%#an"e% exi%# (hi"h render i# ne"e%%ar) in #he publi" in#ere%# %o #o do, #he Cen#ral ?overnmen# ma), b) no#i$i"a#ion, %uper%ede #he Board $or %u"h period, no# ex"eedin& %ix mon#h%, a% ma) be %pe"i$ied in #he no#i$i"a#ion (9) Opon #he publi"a#ion o$ a no#i$i"a#ion under %ub-%e"#ion (1) %uper%edin& #he Board,(a) all #he member% %hall, a% $rom #he da#e o$ %uper%e%%ion, va"a#e #heir o$$i"e% a% %u"h< (b) all #he po(er%, $un"#ion% and du#ie% (hi"h ma), b) or under #he provi%ion% o$ #hi% !"#, be exer"i%ed or di%"har&ed b) or on behal$ o$ #he Board, %hall un#il #he Board i% re"on%#i#u#ed under %ub-%e"#ion (:), be exer"i%ed and di%"har&ed b) %u"h per%on or per%on% a% #he Cen#ral ?overnmen# ma) dire"#< and (") all proper#) o(ned or "on#rolled b) #he Board %hall, un#il #he Board i% re"on%#i#u#ed under %ub-%e"#ion (:), ve%# in #he Cen#ral ?overnmen# (:) 1n #he expira#ion o$ #he period o$ %uper%e%%ion %pe"i$ied in #he no#i$i"a#ion i%%ued under %ub-%e"#ion (1), #he Cen#ral ?overnmen# ma) re"on%#i#u#e #he Board b) a $re%h appoin#men# and in %u"h "a%e an) per%on or per%on% (ho va"a#ed #heir o$$i"e% under "lau%e (a) o$ %ub-%e"#ion (9), %hall no# be deemed di%5uali$ied $or appoin#men#. *rovided #ha# #he Cen#ral ?overnmen# ma), a# an) #ime, be$ore #he expira#ion o$ #he period o$ %uper%e%%ion, #a'e a"#ion under #hi% %ub-%e"#ion (4) 0he Cen#ral ?overnmen# %hall "au%e a no#i$i"a#ion i%%ued under %ub-%e"#ion (1) and a $ull repor# o$ an) a"#ion #a'en under #hi% %e"#ion and #he "ir"um%#an"e% leadin& #o %u"h a"#ion #o be laid be$ore ea"h /ou%e o$ *arliamen# a# #he earlie%# Returns and reports! 1B (1) 0he Board %hall $urni%h #o #he Cen#ral ?overnmen# a# %u"h #ime and in %u"h $orm and manner a% ma) be pre%"ribed or a% #he Cen#ral ?overnmen# ma)

dire"#, %u"h re#urn% and %#a#emen#% and %u"h par#i"ular% in re&ard #o an) propo%ed or exi%#in& pro&ramme $or #he promo#ion and developmen# o$ #he %e"uri#ie% mar'e#, a% #he Cen#ral ?overnmen# ma), $rom #ime #o #ime, re5uire (9) Ei#hou# pre6udi"e #o #he provi%ion% o$ %ub-%e"#ion (1), #he Board %hall, (i#hin =nine#) da)%> a$#er #he end o$ ea"h $inan"ial )ear, %ubmi# #o #he Cen#ral ?overnmen# a repor# in %u"h $orm, a% ma) be pre%"ribed, &ivin& a #rue and $ull a""oun# o$ i#% a"#ivi#ie%, poli") and pro&ramme% durin& #he previou% $inan"ial )ear (:) ! "op) o$ #he repor# re"eived under %ub-%e"#ion (9) %hall be laid, a% %oon a% ma) be a$#er i# i% re"eived, be$ore ea"h /ou%e o$ *arliamen# %elegation! 18 0he Board ma), b) &eneral or %pe"ial order in (ri#in& dele&a#e #o an) member, o$$i"er o$ #he Board or an) o#her per%on %ub6e"# #o %u"h "ondi#ion%, i$ an), a% ma) be %pe"i$ied in #he order, %u"h o$ i#% po(er% and $un"#ion% under #hi% !"# (ex"ep# #he po(er% under %e"#ion 98) a% i# ma) deem ne"e%%ar) Appeals 90 (1) !n) per%on a&&rieved b) =an order o$ #he Board made, be$ore #he "ommen"emen# o$ Se"uri#ie% 2a(% (Se"ond !mendmen#) !"#, 1888,> under #hi% !"#, or #he rule% or re&ula#ion% made #hereunder ma) pre$er an appeal #o #he Cen#ral ?overnmen# (i#hin %u"h #ime a% ma) be pre%"ribed (9) @o appeal %hall be admi##ed i$ i# i% pre$erred a$#er #he expir) o$ #he period pre%"ribed #here$ore. *rovided #ha# an appeal ma) be admi##ed a$#er #he expir) o$ #he period pre%"ribed #here$or i$ #he appellan# %a#i%$ie% #he Cen#ral ?overnmen# #ha# he had %u$$i"ien# "au%e $or no# pre$errin& #he appeal (i#hin #he pre%"ribed period (:) Ever) appeal made under #hi% %e"#ion %hall be made in %u"h $orm and %hall be a""ompanied b) a "op) o$ #he order appealed a&ain%# and b) %u"h $ee% a% ma) be pre%"ribed (4) 0he pro"edure $or di%po%in& o$ an appeal %hall be %u"h a% ma) be pre%"ribed. *rovided #ha# be$ore di%po%in& o$ an appeal, #he appellan# %hall be &iven a rea%onable oppor#uni#) o$ bein& heard 7-AA!(ar of >urisdiction!8 @o order pa%%ed b) #he =Board or #he !d6udi"a#in& o$$i"er> under #hi% !"# %hall be appealable ex"ep# a% provided in =%e"#ion 150 or %e"#ion 90> and no Civil Cour# %hall have 6uri%di"#ion in re%pe"# o$ an) ma##er (hi"h #he =Board or #he !d6udi"a#in& o$$i"er> i% empo(ered b), or under, #hi% !"# #o pa%% an) order and no in6un"#ion %hall be &ran#ed b) an) "our# or o#her au#hori#) in re%pe"# o$ an) a"#ion #a'en or #o be #a'en in pur%uan"e o$ an) order pa%%ed b) #he =Board or #he ad6udi"a#in& o$$i"e> b), or under, #hi% !"# > Savings! 91 @o#hin& in #hi% !"# %hall exemp# an) per%on $rom an) %ui# or o#her pro"eedin&% (hi"h mi&h#, apar# $rom #hi% !"#, be brou&h# a&ain%# him Mem3ers, )fficers and emplo5ees of the (oard to 3e pu3lic servants! 99 !ll member%, o$$i"er% and o#her emplo)ee% o$ #he Board %hall be deemed, (hen a"#in& or purpor#in& #o a"# in pur%uan"e o$ an) o$ #he provi%ion% o$ #hi% !"#,

#o be publi" %ervan#% (i#hin #he meanin& o$ %e"#ion 91 o$ #he Indian *enal Code (45 o$ 1BC0) .rotection of action taken in good faith! 9: @o %ui#, pro%e"u#ion or o#her le&al pro"eedin&% %hall lie a&ain%# #he Cen#ral ?overnmen# =or Board> or an) o$$i"er o$ #he Cen#ral ?overnmen# or an) member, o$$i"er or o#her emplo)ee o$ #he Board $or an)#hin& (hi"h i% in &ood $ai#h done or in#ended #o be done under #hi% !"# or #he rule% or re&ula#ion% made #hereunder 7-B!)ffences! -(1) Ei#hou# pre6udi"e #o an) a(ard o$ penal#) b) #he !d6udi"a#in& 1$$i"er under #hi% !"#, i$ an) per%on "on#ravene% or a##emp#% #o "on#ravene or abe#% #he "on#raven#ion o$ #he provi%ion% o$ #hi% !"# or o$ an) rule% or re&ula#ion% made #hereunder, he %hall be puni%hable (i#h impri%onmen# $or a #erm (hi"h ma) ex#end #o =#en )ear%, or (i#h $ine, (hi"h ma) ex#end #o #(en#)-$ive "rore rupee% or (i#h bo#h > (9) I$ an) per%on $ail% #o pa) #he penal#) impo%ed b) #he !d6udi"a#in& 1$$i"er or $ail% #o "ompl) (i#h an) o$ hi% dire"#ion% or order%, he %hall be puni%hable (i#h impri%onmen# $or a #erm (hi"h %hall no# be le%% #han one mon#h, bu# (hi"h ma) ex#end #o =#en )ear% or (i#h $ine, (hi"h ma) ex#end #o #(en#)-$ive "rore rupee% or (i#h bo#h> > =Composition of certain offences! 94! @o#(i#h%#andin& an)#hin& "on#ained in #he Code o$ Criminal *ro"edure, 18G:(9 o$ 18G4), an) o$$en"e puni%hable under #hi% !"#, no# bein& an o$$en"e puni%hable (i#h impri%onmen# onl), or (i#h impri%onmen# and al%o (i#h $ine, ma) ei#her be$ore or a$#er #he in%#i#u#ion o$ an) pro"eedin&, be "ompounded b) a Se"uri#ie% !ppella#e 0ribunal or a "our# be$ore (hi"h %u"h pro"eedin&% are pendin& .ower to grant immunit5! 94B (1) 0he Cen#ral ?overnmen# ma), on re"ommenda#ion b) #he Board, i$ #he Cen#ral ?overnmen# i% %a#i%$ied, #ha# an) per%on, (ho i% alle&ed #o have viola#ed an) o$ #he provi%ion% o$ #hi% !"# or #he rule% or #he re&ula#ion% made #hereunder, ha% made a $ull and #rue di%"lo%ure in re%pe"# o$ #he alle&ed viola#ion, &ran# #o %u"h per%on, %ub6e"# #o %u"h "ondi#ion% a% i# ma) #hin' $i# #o impo%e, immuni#) $rom pro%e"u#ion $or an) o$$en"e under #hi% !"#, or #he rule% or #he re&ula#ion% made #hereunder or al%o $rom #he impo%i#ion o$ an) penal#) under #hi% !"# (i#h re%pe"# #o #he alle&ed viola#ion. *rovided #ha# no %u"h immuni#) %hall be &ran#ed b) #he Cen#ral ?overnmen# in "a%e% (here #he pro"eedin&% $or #he pro%e"u#ion $or an) %u"h o$$en"e have been in%#i#u#ed be$ore #he da#e o$ re"eip# o$ appli"a#ion $or &ran# o$ %u"h immuni#). *rovided $ur#her #ha# re"ommenda#ion o$ #he Board under #hi% %ub-%e"#ion %hall no# be bindin& upon #he Cen#ral ?overnmen# (9) !n immuni#) &ran#ed #o a per%on under %ub-%e"#ion (1) ma), a# an) #ime, be (i#hdra(n b) #he Cen#ral ?overnmen#, i$ i# i% %a#i%$ied #ha# %u"h per%on had, in #he "our%e o$ #he pro"eedin&%, no# "omplied (i#h #he "ondi#ion on (hi"h #he immuni#) (a% &ran#ed or had &iven $al%e eviden"e, and #hereupon %u"h per%on ma) be #ried $or #he o$$en"e (i#h re%pe"# #o (hi"h #he immuni#) (a% &ran#ed or $or an) o#her o$$en"e o$ (hi"h he appear% #o have been &uil#) in "onne"#ion (i#h

#he "on#raven#ion and %hall al%o be"ome liable #o #he impo%i#ion o$ an) penal#) under #hi% !"# #o (hi"h %u"h per%on (ould have been liable, had no# %u"h immuni#) been &ran#ed > $1emption from ta1 on wealth and income! 95 @o#(i#h%#andin& an)#hin& "on#ained in #he Eeal#h 0ax !"#, 185G(9G o$ 185G), #he In"ome 0ax !"#, 18C1(4: o$ 18C1) or an) o#her ena"#men# $or #he #ime bein& in $or"e rela#in& #o #ax on (eal#h, in"ome, pro$i#% or &ain% (a) #he Board< (b) #he exi%#in& Se"uri#ie% and Ex"han&e Board $rom #he da#e o$ i#% "on%#i#u#ion #o #he da#e o$ e%#abli%hmen# o$ #he Board, %hall no# be liable #o pa) (eal#h-#ax, in"ome-#ax or an) o#her #ax in re%pe"# o$ #heir (eal#h, in"ome, pro$i#% or &ain% derived Cogni?ance of offences 35 courts! 9C (1) @o "our# %hall #a'e "o&niDan"e o$ an) o$$en"e puni%hable under #hi% !"# or an) rule% or re&ula#ion% made #hereunder, %ave on a "omplain# made b) #he Board = > (9) @o "our# in$erior #o #ha# o$ =a Cour# o$ Se%%ion> %hall #r) an o$$en"e puni%hable under #hi% !"# )ffences 35 companies! 9G (1) Ehere an o$$en"e under #hi% !"# ha% been "ommi##ed b) a "ompan), ever) per%on (ho a# #he #ime #he o$$en"e (a% "ommi##ed (a% in "har&e o$, and (a% re%pon%ible #o, #he "ompan) $or #he "ondu"# o$ #he bu%ine%% o$ #he "ompan), a% (ell a% #he "ompan), %hall be deemed #o be &uil#) o$ #he o$$en"e and %hall be liable #o be pro"eeded a&ain%# and puni%hed a""ordin&l). *rovided #ha# no#hin& "on#ained in #hi% %ub-%e"#ion %hall render an) %u"h per%on liable #o an) puni%hmen# provided in #hi% !"#, i$ he prove% #ha# #he o$$en"e (a% "ommi##ed (i#hou# hi% 'no(led&e or #ha# he had exer"i%ed all due dili&en"e #o preven# #he "ommi%%ion o$ %u"h o$$en"e (9) @o#(i#h%#andin& an)#hin& "on#ained in %ub-%e"#ion (1), (here an o$$en"e under #hi% !"# ha% been "ommi##ed b) a "ompan) and i# i% proved #ha# #he o$$en"e ha% been "ommi##ed (i#h #he "on%en# or "onnivan"e o$, or i% a##ribu#able #o an) ne&le"# on #he par# o$, an) dire"#or, mana&er, %e"re#ar) or o#her o$$i"er o$ #he "ompan), %u"h dire"#or, mana&er, %e"re#ar) or o#her o$$i"er %hall al%o be deemed #o be &uil#) o$ #he o$$en"e and %hall be liable #o be pro"eeded a&ain%# and puni%hed a""ordin&l) $#planation.% +or #he purpo%e% o$ #hi% %e"#ion, (a) ;"ompan); mean% an) bod) "orpora#e and in"lude% a $irm or o#her a%%o"ia#ion o$ individual%< and (b) ;dire"#or; in rela#ion #o a $irm, mean% a par#ner in #he $irm .ower to e1empt! 9B =1mi##ed b) #he Se"uri#ie% 2a(% (!mendmen#) !"#,1885(8 o$ 1885), S 15 (( e $ 95-1-1885) > .ower to make rules! 98 (1) 0he Cen#ral ?overnmen# ma), b) no#i$i"a#ion, ma'e rule% $or "arr)in& ou# #he purpo%e% o$ #hi% !"#

(9) In par#i"ular, and (i#hou# pre6udi"e #o #he &enerali#) o$ #he $ore&oin& po(er, %u"h rule% ma) provide $or all or an) o$ #he $ollo(in& ma##er%, namel).(a) #he #erm o$ o$$i"e and o#her "ondi#ion% o$ %ervi"e o$ #he Chairman and #he member% under %ub-%e"#ion (1) o$ %e"#ion 5< (b) #he addi#ional $un"#ion% #ha# ma) be per$ormed b) #he Board under %e"#ion 11< (") =LLLL> (d) #he manner in (hi"h #he a""oun#% o$ #he Board %hall be main#ained under %e"#ion 15< =(da) #he manner o$ in5uir) under %ub-%e"#ion (1) o$ %e"#ion 15-I< (db) #he %alarie% and allo(an"e% and o#her #erm% and "ondi#ion% o$ %ervi"e o$ #he =*re%idin& 1$$i"er%, Member%> and o#her o$$i"er% and emplo)ee% o$ #he Se"uri#ie% !ppella#e 0ribunal under %e"#ion 15-1 and %ub-%e"#ion (:) o$ %e"#ion 15S< (d") #he pro"edure $or #he inve%#i&a#ion o$ mi%behaviour or in"apa"i#) o$ #he =*re%idin& 1$$i"er%, or o#her Member%> o$ #he Se"uri#ie% !ppella#e 0ribunal under %ub-%e"#ion (:) o$ %e"#ion 15P< (dd) #he $orm in (hi"h an appeal ma) be $iled be$ore #he Se"uri#ie% !ppella#e 0ribunal under %e"#ion 15 -0 and #he $ee% pa)able in re%pe"# o$ %u"h appeal<> (e) #he $orm and #he manner in (hi"h re#urn% and repor# #o be made #o #he Cen#ral ?overnmen# under %e"#ion 1B< ($) an) o#her ma##er (hi"h i% #o be, or ma) be, pre%"ribed, or in re%pe"# o$ (hi"h provi%ion i% #o be, or ma) be, made b) rule% .ower to make regulations! :0 (1) 0he Board ma), =LLL> b) no#i$i"a#ion, ma'e re&ula#ion% "on%i%#en# (i#h #hi% !"# and #he rule% made #hereunder #o "arr) ou# #he purpo%e% o$ #hi% !"# (9) In par#i"ular, and (i#hou# pre6udi"e #o #he &enerali#) o$ #he $ore&oin& po(er, %u"h re&ula#ion% ma) provide $or all or an) o$ #he $ollo(in& ma##er%, namel).(a) #he #ime% and pla"e% o$ mee#in&% o$ #he Board and #he pro"edure #o be $ollo(ed a# %u"h mee#in&% under %ub-%e"#ion (1) o$ %e"#ion G in"ludin& 5uorum ne"e%%ar) $or #he #ran%a"#ion o$ bu%ine%%< (b) #he #erm% and o#her "ondi#ion% o$ %ervi"e o$ o$$i"er% and emplo)ee% o$ #he Board under %ub-%e"#ion (9) o$ %e"#ion 8< =(") #he ma##er% rela#in& #o i%%ue o$ "api#al, #ran%$er o$ %e"uri#ie% and o#her ma##er% in"iden#al #here#o and #he manner in (hi"h %u"h ma##er% %hall be di%"lo%ed b) #he "ompanie% under %e"#ion 11!< (d) #he "ondi#ion% %ub6e"# #o (hi"h "er#i$i"a#e o$ re&i%#ra#ion i% #o be i%%ued, #he amoun# o$ $ee #o be paid $or "er#i$i"a#e o$ re&i%#ra#ion and #he manner o$ %u%pen%ion or "an"ella#ion o$ "er#i$i"a#e o$ re&i%#ra#ion under %e"#ion 19 > Rules and regulations to 3e laid 3efore .arliament! :1 Ever) rule and ever) re&ula#ion made under #hi% !"# %hall be laid, a% %oon a% ma) be a$#er i# i% made, be$ore ea"h /ou%e o$ *arliamen#, (hile i# i% in %e%%ion, $or a #o#al period o$ #hir#) da)% (hi"h ma) be "ompri%ed in one %e%%ion or in #(o or more %u""e%%ive %e%%ion%, and i$, be$ore #he expir) o$ #he %e%%ion immedia#el) $ollo(in& #he %e%%ion or #he %u""e%%ive %e%%ion% a$ore%aid, bo#h /ou%e% a&ree in ma'in& an) modi$i"a#ion in #he rule or re&ula#ion or bo#h /ou%e% a&ree #ha# #he rule or re&ula#ion %hould no# be made, #he rule or re&ula#ion %hall #herea$#er have

e$$e"# onl) in %u"h modi$ied $orm or be o$ no e$$e"#, a% #he "a%e ma) be< %o, ho(ever, #ha# an) %u"h modi$i"a#ion or annulmen# %hall be (i#hou# pre6udi"e #o #he validi#) o$ an)#hin& previou%l) done under #ha# rule or re&ula#ion Application of other laws not 3arred! :9 0he provi%ion% o$ #hi% !"# %hall be in addi#ion #o, and no# in dero&a#ion o$, #he provi%ion% o$ an) o#her la( $or #he #ime bein& in $or"e Amendment of certain enactments! :: 0he ena"#men#% %pe"i$ied in *ar#% I and II o$ #he S"hedule #o #hi% !"# %hall be amended in #he manner %pe"i$ied #herein and %u"h amendmen#% %hall #a'e e$$e"# on #he da#e o$ e%#abli%hmen# o$ #he Board .ower to remove difficulties! :4 (1) I$ an) di$$i"ul#) ari%e% in &ivin& e$$e"# #o #he provi%ion% o$ #hi% !"#, #he Cen#ral ?overnmen# ma), b) order, publi%hed in #he 1$$i"ial ?aDe##e, ma'e %u"h provi%ion% no# in"on%i%#en# (i#h #he provi%ion% o$ #hi% !"# a% ma) appear #o be ne"e%%ar) $or removin& #he di$$i"ul#). *rovided #ha# no order %hall be made under #hi% %e"#ion a$#er #he expir) o$ $ive )ear% $rom #he "ommen"emen# o$ #hi% !"# (9) Ever) order made under #hi% %e"#ion %hall be laid, a% %oon a% ma) be a$#er i# i% made, be$ore ea"h /ou%e o$ *arliamen# Repeal and saving! :5 (1) 0he Se"uri#ie% and Ex"han&e Board o$ India 1rdinan"e, 1889 (1rd 5 o$ 1889), i% hereb) repealed (9) @o#(i#h%#andin& %u"h repeal, an)#hin& done or an) a"#ion #a'en under #he %aid 1rdinan"e, %hall be deemed #o have been done or #a'en under #he "orre%pondin& provi%ion% o$ #hi% !"# 0/E SC/E4O2E =See %e"#ion ::> Amendment of Certain nactments PA!" #> AM N$M N" "O "% CAP#"A& #SS' S (CON"!O&) AC"* +,-. (/, of +,-.) .n se0tion 12 for ?to that Government@ s$bstit$te ?to that Government or the Se0$rities an4 ;<0han'e &oar4 of .n4ia@. PA!" ##0 AM N$M N"S (! 1'&A"#ON) AC"* +,23 (-/ of +,23) "O "% S C'!#"# S CON"!AC"S

1. Se0tion 2 in 0 a$se (h) for s$b40 a$se (ii)8 s$bstit$te the fo o=in'> (ii) Government se0$ritiesA (iia) s$0h other instr$ments as may be 4e0 are4 by the "entra Government to be se0$ritiesA an4@. 2. Se0tion +8B

(i) in s$b4se0tion (1)8 for ?"entra Government@8 s$bstit$te ?Se0$rities an4 ;<0han'e &oar4 of .n4ia@A (ii) in s$b4se0tion (2) for ?by the "entra Government@8 s$bstit$te ?by the Se0$rities an4 ;<0han'e &oar4 of .n4ia@. (iii) in s$b:se0tion (3)8 for ?"entra Government@8 =herever it o00$rs8 s$bstit$te ?Se0$rities an4 ;<0han'e &oar4 of .n4ia@A 3. Se0tion 98 for ?"entra Government@ =herever it o00$rs8 s$bstit$te ?Se0$rities an4 ;<0han'e &oar4 of .n4ia@A !. Se0tion 128 for ?"entra Government@ =herever it o00$rs8 s$bstit$te ?Se0$rities an4 ;<0han'e &oar4 of .n4ia@A 5. Se0tion 178 in s$b:se0tion (1)8 for ? i0en0e 'rante4 by the "entra Government@8 s$bstit$te ? i0en0e 'rante4 by the Se0$rities an4 ;<0han'e &oar4 of .n4ia@A +. Se0tion 21 for ?"entra Government@8 s$bstit$te ?Se0$rities an4 ;<0han'e &oar4 of .n4ia@A 7. Se0tion 22*8 in s$b4se0tion (3)8 for 0 a$se (b)8 s$bstit$te the fo o=in'B ?(b) that the transfer of the se0$rities is in 0ontravention of any a= or r$ es ma4e there$n4er or any a4ministrative instr$0tions or 0on4itions of istin' a'reement ai4 4o=n in 5$rs$an0e of s$0h a=s an4 r$ es.CA 1. .n s$b4se0tion (2) of se0tion 238 for ?"entra Government $n4er se0tion 21 or se0tion 22@8 s$bstit$te ?Se0$rities an4 ;<0han'e &oar4 of .n4ia $n4er se0tion 21 or the "entra Government $n4er se0tion 22@A 9. *fter se0tion 29 insert the fo o=in'> 29*./o=er to 4e e'ate. B The "entra Government may8 by or4er 5$b ishe4 in the Offi0ia GaDette8 4ire0t that the 5o=ers e<er0isab e by it $n4er any 5rovision of this *0t sha 8 in re ation to s$0h matters an4 s$b7e0t to s$0h 0on4itions8 if any as may be s5e0ifie4 in or4er8 be e<0$sab e a so by the Se0$rities an4 ;<0han'e &oar4 of .n4ia@ .nserte4 by the Se0$rities La=s (*men4ment) *0t8 31 of 19998 S. 11 ( =.e.f. 22:2:2222). .nserte4 by the S;&. (*men4ment) *0t8 22228 S. 2(=.e.r.f. 29:12:2222). S$bstit$te4 by the Se0$rities La=s (*men4ment) *0t8 19958 =.e.f. 25:21:1995. /rior to its s$bstit$tion8 s$b:se0tion (2) rea4s as $n4er> ? (2) Eor4s an4 e<5ressions $se4 an4 not 4efine4 in this *0t b$t 4efine4 in the "a5ita .ss$es ("ontro ) *0t8 19!7 or the Se0$rities "ontra0ts (e'$ ation *0t8 195+ sha have the same meanin's res5e0tive y assi'ne4 to them in those *0ts.@ .nserte4 by the 4e5ositories *0t8 199+8 =.e.f. 22:29:1995. S$bstit$te4 by the S;&. (*men4ment) *0t8 22228 S. 3(a) (i) (*) (=..r.e.f. 29:12:2222) 8 for ?6inistries@. S$bstit$te4 by the S;&. (*men4ment) *0t8 22228 S. 3(a) (i) (&) (=..r.e.f. 29:12:2222) 8 for ?an4 La=@ S$bstit$te4 by the S;&. (*men4ment) *0t8 22228 S. 3(a) (ii) (=..r.e.f. 29:12:2222) 8 for ?the (eserve &an% of .n4ia 0onstit$te4 $n4er se0tion 3 of the (eserve &an% of .n4ia *0t8 193! (2 of 193!)@. S$bstit$te4 by the S;&. (*men4ment) *0t8 22228 S. 3(a) (iii) (=..r.e.f. 29:12:2222) 8 for ?(4) t=o other members8@.

S$bstit$te4 by the S;&. (*men4ment) *0t8 22228 S. 3(b) (=..r.e.f. 29:12:2222) 8 for ? (eserve &an% of .n4ia@. The bra0%ets an4 fi'$re ?(1)@ omitte4 by *0t 9 of 19958 S. 3 (=.e.f. 25:1:1995) " a$se (4) omitte4 by *0t 9 of 19958 S. 3 (=.e.f. 25:1:1995) .nserte4 by *0t 9 of 19958 S. ! (=.e.f.25:1:1995). .nserte4 by *0t 9 of 19958 S. 5 (=.e.f.) 25:1:1995 .nserte4 by the #e5ositories *0t8 199+8=.e.f. 22:9:1995 S$bstit$te4 by *0t 9 of 19958 S. 5 (=.e.f. 25:1:1995) 8 for ?0o e0tive investment s0hemes@ S$bstit$te4 by *0t 9 of 19958 S. 5 (=.e.f. 25:1:1995) 8 for ?sto0% e<0han'es an4@ .nserte4 by the S;&. (*men4ment) *0t8 2222 8 S. !(a) (=.e.f. 29:12:2222). The =or4s ?the "a5ita .ss$es ("ontro ) *0t8 19!7 (29 of 19!7) an4@ omitte4 by *0t 9 of 19958 S. 5 (=.e.f. 25:1:1995) .nserte4 by *0t 9 of 1995 S. 5 (=.e.f. 25:1:1995) .nserte4 by the S;&. (*men4ment) *0t8 2222 8 S. !(b) (=.e.f. 29:12:2222). .nserte4 by *0t 9 of 1995 S. 5 ( =.e.f. 25:1:1995) .nserte4 by the S;&. (*men4ment) *0t8 2222 8 S. !(0) (i) (=.e.f. 29:12:2222). .nserte4 by the S;&. (*men4ment) *0t8 2222 8 S. !(0) (ii) (=.e.f. 29:12:2222). .nserte4 by the S;&. (*men4ment) *0t8 2222 8 S. !(4) (=.e.f. 29:12:2222). S$bstit$te4 by the S;&. (*men4ment) *0t8 2222 8 S. 5 (=.e.f. 29:12:2222) 8 for S. 11*. /rior to this s$bstit$tion 8 S. 11* rea4 as $n4er>: 11*. 6atters to be 4is0 ose4 by the 0om5anies.:Eitho$t /re7$4i0e to the /rovisions of the "om5anies *0t 8 195+ (1 of 195+)8 the boar4 may 8 for the 5rote0tion of investors 8 s5e0ify 8 by re'$ ations8: (a) the matters re atin' to iss$e of 0a5ita 8 transfer of se0$rities an4 other matters in0i4enta theretoA an4 (b) the manner in =hi0h s$0h matters8 sha be 4is0 ose4 by the 0om5anies. .nserte4 by *0t 31 of 1999 8 S. 11 (=.e.f. 22:2:2222).F .nserte4 by *0t 9 of 1995 8 S. +(=.e.f. 25:1:1995) .nserte4 by S;&. (*men4ment) *0t 8 22228 =.e.f.29:12:2222. S$bstit$te4 by *0t 9 of 19958 S.7 (a) (i) (=.e.f. 25:1:1995)8 for ? r$ es@. .nserte4 by *0t 9 of 1995 8 S. 7 (=.e.f.25:1:1995). S$bstit$te4 by *0t 22 of 199+ (=.e.f. 22:9:1995) "ha5ter -* inserte4 by the S;&. (*men4ment) *0t8 22228 S. 7(=.e.f. 29:12:2222). The =or4 ? an4 @ omitte4 by *0t 9 of 19958 S.1 (=.e.f. 25:1:1995). " . (aa) omitte4 by the S;&. (*men4ment) *0t8 22228 S. 1 (=.e.f. 29:12:2222)./rior to its omission8 " . (aa) rea4s as $n4er>: ? (aa) a s$ms rea iDe4 by =ay of /ena ties $n4er this *0t A an4 @. G this 0 a$se ha4 been inserte4 by *0t 9 of 19958 S. 18 ( =.e.f. 25:1: 1995) H. "ha5ters -. * an4 -. & 0ontainin' Ss. 15* to 15J an4 15) to 15I res5e0tive y8 inserte4 by *0t 9 of 1995 8 S. 9 (=.e.f. 25:1:1995). S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 9 (i) (=.e.f. 29:12:2222)8 for ? a 5ena ty not e<0ee4in' one a%h an4 fifty tho$san4 r$5ees for ea0h s$0h fai $re @.

S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 9 (ii) (=.e.f. 29:12:2222)8 for ? a 5ena ty not e<0ee4in' one a%h an4 fifty tho$san4 r$5ees for ea0h s$0h fai $re @. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 9 (iii) (=.e.f. 29:12:2222)8 for ? a 5ena ty not e<0ee4in' one a%h an4 fifty tho$san4 r$5ees for ea0h s$0h fai $re @. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 12 (=.e.f. 29:12:2222)8 for ? a 5ena ty not e<0ee4in' five a%h r$5ees for every s$0h fai $re @. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 11 (=.e.f. 29:12:2222)8 for ?.f any 5erson8 =ho is re'istere4 as an interme4iary8 after havin' been 0a e4 $5on by the &oar4 in =ritin' to re4ress the 'rievan0es of investors. fai s to re4ress s$0h 'rievan0es8 he sha be iab e to a 5ena ty not e<0ee4in' ten tho$san4 r$5ees for ea0h s$0h fai $re.@ S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 12 (i) (=.e.f. 29:12:2222)8 for ?a 5ena ty not e<0ee4in' ten tho$san4 r$5ees for ea0h 4ay 4$rin' =hi0h he 0arries on any s$0h 0o e0tive investment s0heme in0 $4in' m$t$a f$n4s8 or ten a%h r$5ees =hi0hever is hi'her.@ S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 12 (ii) (=.e.f. 29:12:2222)8 for ?a 5ena ty not e<0ee4in' ten tho$san4 r$5ees for ea0h 4ay 4$rin' =hi0h s$0h fai $re 0ontin$es or ten a%h r$5ees8 =hi0hever is hi'her@. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 12 (iii) (=.e.f. 29:12:2222)8 for ?a 5ena ty not e<0ee4in' five tho$san4 r$5ees for ea0h 4ay 4$rin' =hi0h s$0h fai $re 0ontin$es or five a%h r$5ees8 =hi0hever is hi'her@. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 12 (iv) (=.e.f. 29:12:2222)8 for ?a 5ena ty not e<0ee4in' one tho$san4 r$5ees for ea0h 4ay 4$rin' =hi0h s$0h fai $re 0ontin$es@. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 12 (v) (=.e.f. 29:12:2222)8 for ?a 5ena ty not e<0ee4in' one tho$san4 r$5ees for ea0h 4ay 4$rin' =hi0h s$0h fai $re 0ontin$es@. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 12 (v) (=.e.f. 29:12:2222)8 for ?a 5ena ty not e<0ee4in' five a%h r$5ees for ea0h s$0h fai $re @. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 13 (=.e.f. 29:12:2222)8 for ?a 5ena ty not e<0ee4in' five a%h r$5ees for ea0h s$0h fai $re @. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 1!(i) (=.e.f. 29:12:2222)8 for ?a 5ena ty not e<0ee4in' five tho$san4 r$5ees for ea0h 4ay 4$rin' =hi0h s$0h fai $re 0ontin$es @. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 1!(ii) (=.e.f. 29:12:2222)8 for ?a 5ena ty not e<0ee4in' five tho$san4 r$5ees @. S$bstit$te4 by the S;&. (*men4ment) *0t 8 2222 8 S. 1!(ii) (=.e.f. 29:12:2222)8 for ?not e<0ee4in' five a%h r$5ees @. .nserte4 by the S;&. (*men4ment) *0t822228 S. 1+ (a) (=.e.f.29:12:2222). S$bstit$te4 by the S;&. (*men4ment )*0t8 22228 S. 1+ (b) (=.e.f.29:12:2::2222)8 for ?not e<0ee4in' five a%h r$5ees@. .nserte4 by the S;&. (*men4ment) *0t822228 S. 17 (=.e.f.29:12:2222).

S$bstit$te4 by the S;&. (*men4ment )*0t8 22228 S. 11 (=.e.f.29:12:2::2222)8 for ?an4 15, @. .nserte4 by the S;&. (*men4ment) *0t822228 S.19 (=.e.f. 29:12:2222). .nserte4 by the S;&. (*men4ment) *0t 32 of 19998 S.1 (=.e.f.1+:12:1999). S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.22 (=.e.f. 29:12:2222)8 for Se0tions 15L an4 156. /rior to their s$bstit$tion8 Se0tion 15L an4 156 rea4 as $n4er>: ?15:L. "om5osition of se0$rities *55e ate Trib$na . * Se0$rities *55e ate Trib$na sha 0onsist of one 5erson on y (hereinafter referre4 to as the /resi4in' Offi0er of the Se0$rities *55e ate Trib$na ) to be a55ointe48 by notifi0ation8 by the 0entra Government. 156. J$a ifi0ations for a55ointment as /resi4in' Offi0er of the Se0$rities *55e ate Trib$na . * 5erson sha not be K$a ifie4 for a55ointment as the /resi4in' Offi0er of a Se0$rities *55e ate Trib$na $n ess he:(a) is8 or has been8 or is K$a ifie4 to be8 a J$4'e of a ,i'h "o$rtA or (b) has been a member of the .n4ian Le'a Servi0e an4 has he 4 a 5ost in Gra4e . of that servi0e for at east three years. (0) has he 4 offi0e as the /resi4in' Offi0er of a trib$na for at east three years.@ S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.21 (=.e.f. 29:12:2222)8 for Se0tions 153. /rior to their s$bstit$tion8 Se0tion 153 rea4 as $n4er>: ?153. Term of offi0e.: The /resi4in' offi0er of a Se0$rities *55e ate Trib$na sha ho 4 offi0e for a term of five years from the 4ate on =hi0h he enters $5on his offi0e or $nti he attains the a'e of si<ty:five years8 =hi0hever is ear ier.@ S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.22 (=.e.f. 29:12:2222)8 for ?/resi4in' Offi0er of a Se0$rities *55e ate Trib$na @. S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.22 (=.e.f. 29:12:2222)8 for ? the sai4 /resi4in' Offi0er@. S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.23 (=.e.f. 29:12:2222)8 for ? offi0e of the /resi4in' Offi0er@. S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.2!(a) (i) (=.e.f. 29:12:2222)8 for ? /resi4in' Offi0er of a Se0$rities *55e ate Trib$na @. S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.2! (a) (ii) (=.e.f. 29:12:2222)8 for ? the sai4 /resi4in' Offi0er@. S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.2! (b) (=.e.f. 29:12:2222)8 for ? /resi4in' Offi0er@. S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.2! (b) (=.e.f. 29:12:2222)8 for ? /resi4in' Offi0er@. S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.2! (0) (=.e.f. 29:12:2222)8 for ? the sai4 /resi4in' Offi0er@. S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.25 (=.e.f. 29:12:2222)8 for ? /resi4in' Offi0er@.

S$bstit$te4 by the *0t 32 of 19998 S. 9 (=.e.f. 1+:12:1999)8 for S$b:se0 (1) L (2). /rior to their s$bstit$tion8 S$b:se0 =ere rea4 as $n4er> (1) Save as 5rovi4e4 in s$b:se0tion (2)8 any 5erson a''rieve4 by any or4er ma4e by any *47$4i0atin' Offi0er $n4er this *0t8 may 5refer an a55ea to a Se0$rities *55e ate Trib$na havin' 7$ris4i0tion in the matter. (2) 3o a55ea sha ie to the Se0$rities *55e ate Trib$na from an or4er ma4e by an *47$4i0atin' Offi0er =ith the 0onsent of the 5arties. S$bstit$te4 by the *0t 32 of 19998 S. 9 (=.e.f. 1+:12:1999)8 for ?a 0o5y of the or4er ma4e by the a47$4i0atin' offi0er@ S$bstit$te4 by the *0t 32 of 19998 S. 9(=.e.f. 1+:12:1999)8 for ?5arties@ S$bstit$te4 by the *0t 32 of 19998 S. 9(=.e.f. 1+:12:1999)8 for S. 15-. 5rior to their s$bstit$tion8 S. 15- rea4 as $n4er>: ?15-. The a55e ant may either a55ear in 5erson or a$thorise one or more e'a 5ra0titioners or any of its offi0ers to 5resent his or its 0ase before the Se0$rities *55e ate Trib$na . S$bstit$te4 by the S;&. (*men4ment) *0t8 22228 S.2+ (=.e.f. 29:12:2222)8 for S. 15M. /rior to its s$bstit$tion8 it =as rea4 as $n4er> : 15M. The /resi4in' Offi0er an4 other offi0ers an4 em5 oyees of a Se0$rities *55e ate Trib$na sha be 4eeme4 to be 5$b i0 servants =ithin the meanin' of se0tion 21 of the .n4ian 5ena "o4e( !5 of 11+2). S$bstit$te4 by the S;&. (*men4ment)*0t8 22228 S.27 (=.e.f. 29:12:2222)8 for S. 15I. /rior to its s$bstit$tion 8 it =as rea4 as $n4er>: 15I. *55ea to ,i'h "o$rt.: *ny 5erson a''rieve4 by any 4e0ision or or4er of the Se0$rities *55e ate Trib$na may fi e an a55ea to the ,i'h "o$rt =ithin si<ty 4ays from the 4ate of 0omm$ni0ation of the 4e0ision or or4er of the Se0$rities *55e ate Trib$na to him on any K$estion of fa0t or a= arisin' o$t of s$0h or4er> /rovi4e4 that the ,i'h "o$rt may8 if it is satisfie4 that the a55e ant =as 5revente4 by s$ffi0ient 0a$se from fi in' the a55ea =ithin the sai4 5erio48 a o= it to be fi e4 =ithin a f$rther 5erio4 not e<0ee4in' si<ty 4ays.

S$bstit$te4 by *0t 22 of 199+8 S. 32(=.e.f. 22:9:1995)8 for ?this *0t@ S$bstit$te4 by *0t 9 of 19958 S. 12 (=.e.f. 25:1:1995)8 for ?si<ty 4ays@ S$bstit$te4 by *0t 32 of 19998 S. 11 (=.e.f. 1+:12:1999)8 for ?an or4er of the &oar4 ma4e@ .nserte4 by *0t 9 of 19958 S. 11 (=.e.f. 25:1:1995). S$bstit$te4 by *0t 32 of 19998 S. 12 (=.e.f. 1+:12:1999). Nor ?&oar4@ S$bstit$te4 by *0t 32 of 19998 S. 12 (=.e.f. 1+:12:1999). Nor ?Se0tion 22@ S$bstit$te4 by *0t 32 of 19998 S. 12 (=.e.f. 1+:12:1999). Nor ?&oar4@ S$bstit$te4 by *0t 32 of 19998 S. 12 (=.e.f. 1+:12:1999). Nor ?&oar4@ .nserte4 by *0t 9 of 19958 S. 12 (=.e.f. 25:1:1995). S$bstit$te4 by *0t 9 of 19958 S.13 (=.e.f. 25:1:1995)8 for S. 2!. /rior to its s$bstit$tion the se0tion =as rea4 as $n4er>

2!. /ena ty.: Ehoever 0ontravenes or attem5ts to 0ontravene or abets the 0ontravention of the 5rovisions of this *0t or of any r$ es or re'$ ations ma4e there$n4er8 sha be 5$nishab e =ith im5risonment for a term =hi0h may e<ten4 to one year8 or =ith fine8 or =ith both. S$bstit$te4 by the S;&. (*men4ment) *0t8 22228 S. 21(a) (=.e.f. 29:12:2222)8 for ?one year8 or =ith fine8 or =ith both@. S$bstit$te4 by the S;&. (*men4ment) *0t8 22228 S. 21(a) (=.e.f. 29:12:2222)8 for ?three years or =ith fine =hi0h sha not be ess than t=o tho$san4 r$5ees b$t =hi0h may e<ten4 to ten tho$san4 r$5ees or =ith both@. .nserte4 by the S;&. (*men4ment) *0t8 22228 S. 29 (=.e.f. 29:12:2222). The =or4s ?=ith the 5revio$s san0tion of the "entra Government@ omitte4 by *0t 9 of 19958 S. 1! (=.e.f. 25:1:1995). S$bstit$te4 by the S;&. (*men4ment) *0t822228 S. 32 (=.e.f. 29:12:2222)8 for ?a 6etro5o itan 6a'istrate or a 7$4i0ia 6a'istrate of the first 0 ass@. "L. (0) omitte4 by *0t 9 of 19958 S. 1+ (=.e.f. 25:1:1995). .nserte4 by *0t 9 of 19958 S. 1+ (=.e.f. 25:1:1995). S$bstit$te4 by the S;&. (*men4ment) *0t8 22228 S. 31(i) (=.e.f. 29:12:2222)8 for ?/resi4in' Offi0ers@ S$bstit$te4 by the S;&. (*men4ment) *0t8 22228 S. 31(ii) (=.e.f. 29:12:2222)8 for ?/resi4in' Offi0ers@ The =or4s ?=ith the 5revio$s a55rova of the "entra Government@ omitte4 by *0t 9 of 19958 S. 17 (=.e.f. 25:1:1995). S$bstit$te4 by the *0t 9 of 19958 S. 17 (=.e.f. 25:1:1995)8 for the e<istin' 0 a$se (0). /rior to their s$bstit$tion it 0 a$ses =as rea4 as $n4er> (0) the amo$nt of fee to be 5ai4 for re'istration 0ertifi0ate an4 manner of s$s5ension or 0an0e ation of re'istration 0ertifi0ate $n4er s$b:se0tion (2) an4 (3) of se0tion 12.