SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992
[15 OF 1992]
[4th April, 1992]
An Act to provide for the establishment of a Board 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
BE it enacted by Parliament in the Forty-third Year of the Republic of
India as follows:
CHAPTER I PRELIMINARY
1. Short title, extent and commencement.
(1) This Act may be called the Securities and Exchange Board
of India Act,
1992.
(2)It extends to the whole of India.
(3)It shall be deemed to have come into force on the 30th day of January,
1992.
Definitions.
2. (1) In this Act, unless the context otherwise requires,—
(a) “Board” means the Securities and Exchange Board of India established under
section 3;
(b) “Chairman” means the Chairman of the Board;
1 [(ba)
“collective investment scheme” means any scheme or arrangement which
satisfies
the conditions specified in section 11AA;]
(c) “existing Securities and Exchange Board” means the Securities and Exchange
Board
of India constituted under the Resolution of the Government of India in the
Department of Economic Affairs No. 1(44) SE/86, dated the 12th day of April,
1988;
(d) “Fund” means the Fund constituted under section 14;
2 [(da)
Insurance
Regulatory and Development Authority” means the Insurance Regulatory and
Development Authority of India established under sub-section (1) of section 3 of the
Insurance Regulatory and Development Authority Act, 1999;]
3 [(db)
Judicial
Member” means a Member of the Securities Appellate Tribunal appointed under
sub-section (1) of section 15MA and
includes the Presiding Officer;]
(e) “member” means a member of the Board and includes the Chairman;
(f) “notification” means a notification published in the Official Gazette;
4 [(fa)
Pension
Fund Regulatory and Development Authority” means the Pension Fund Regulatory
and
Development Authority established under subsection (1) of section 3 of the
Pension Fund Regulatory and Development Authority Act, 2013;]
(g) “prescribed” means prescribed by rules made under this Act;
(h) “regulations” means the regulations made by the Board under this
Act;
5 [(ha)
“Reserve
Bank” means the Reserve Bank of India constituted under section 3 of the
Reserve Bank of India Act, 1934 (2 of 1934);]
(i) “securities” has the meaning assigned to it in section 2 of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956);
6 [(j)
Technical
Member” means a Technical Member appointed under sub-section (1) of section
15MB.]
7 [(2) Words
and
expressions used and not defined in this Act but defined in the Securities
Contracts (Regulation) Act, 1956 (42 of 1956) 8 [or the
Depositories Act, 1996], shall have the meanings respectively assigned to
them
in that Act].
Amendment
1 Inserted by the Securities Laws
(Amendment)
Act, 1999, w.e.f. 22-2-2000.
2 Inserted by Part VIII of Chapter VI of
the
Finance Act, 2017 vide Gazette Notification No. 7, Extraordinary Prt II
Section 1 dated March 31, 2017. This shall come into force from April
26,
2017.
3 Inserted by Part VIII of Chapter VI of
the
Finance Act, 2017 vide Gazette Notification No. 7, Extraordinary Prt II
Section 1 dated March 31, 2017. This shall come into force from April
26,
2017.
4 Inserted by Part VIII of Chapter VI of
the
Finance Act, 2017 vide Gazette Notification No. 7, Extraordinary Prt II
Section 1 dated March 31, 2017. This shall come into force from April
26,
2017.
5 Inserted by the Securities Laws (Amendment) Act, 2002,
w.e.f.
29-10-2002.
6 Inserted by Part VIII of Chapter VI of
the
Finance Act, 2017 vide Gazette Notification No. 7, Extraordinary Prt II
Section 1 dated March 31, 2017. This shall come into force from April
26,
2017.
7 Substituted by the Securities Laws (Amendment) Act, 1995,
w.e.f. 25-01-1995. Prior to its substitution, sub- section (2) reads as under:
“(2) Words and expressions used and not defined in this Act but defined in the
Capital Issues (Control) Act, 1947 or the Securities Contracts Regulation Act,
1956
shall have the same meanings respectively assigned to them in those Acts.”
8 Inserted by the Depositories Act, 1996,
w.r.e.f. 20-09-1995.
CHAPTER II
ESTABLISHMENT OF THE SECURITIES AND EXCHANGE BOARD OF INDIA
Establishment and incorporation of Board.
3. (1) With effect from such date as the Central Government may, by notification, appoint, there shall
be
established, for the purposes of this Act, a
Board
by the name of the Securities and Exchange Board of
India.
(2) The Board shall be a body corporate by
the
name aforesaid, having perpetual succession and a common seal, with power
subject to
the provisions of this Act, to acquire, hold and dispose of property, both
movable
and immovable, and to contract, and shall, by the said name, sue or be sued.
(3) The head office of the Board shall be at Bombay.
(4) The Board may establish offices at
other
places in India.
Management of the Board.
4. (1) The Board shall consist of the
following
members, namely:—
(a) a Chairman;
(b) two members from amongst the officials
of
the 9 [Ministry]
of the Central Government dealing with Finance 10 [and
administration of the Companies Act, 1956 (1 of 1956)];
(c) one member from amongst the officials
of 11 [the
Reserve
Bank];
12 [(d)five
other members of whom at least three shall be the whole-time
members,] to
be appointed by the Central Government.
Amendment
9 Substituted for “Ministries” by the SEBI (Amendment) Act,
2002,
w.e.f. 29-10-2002.
10 Substituted for “and law”, by the SEBI (Amendment) Act,
2002,
w.e.f. 29-10-2002.
11 Substituted for “the Reserve Bank of India constituted
under
section 3 of the Reserve Bank of India Act 1934 (2 of 1934)”, by the SEBI
(Amendment) Act, 2002, w.e.f. 29-10-2002.
12 Substituted by the SEBI (Amendment) Act, 2002, w.e.f.
29-10-2002.
Prior to its substitution, clause (d) read as: “(d) two other members”.
13 Substituted for “Reserve Bank of India” by the SEBI
(Amendment)
Act, 2002, w.e.f. 29-10-2002.
59 [CHAPTER VA]
12A. No person shall directly or indirectly—
(a) use or employ, in connection with the issue, purchase or sale of any
securities listed or proposed to be listed on a recognized stock exchange, any
manipulative or deceptive device or contrivance in contravention of the
provisions of this Act or the rules or the regulations made thereunder;
(b) employ any device, scheme or artifice to defraud in connection with issue or
dealing in securities which are listed or proposed to be listed on a recognised
stock exchange;
(c) engage in any act, practice, course of business which operates or would
operate as fraud or deceit upon any person, in connection with the issue,
dealing in securities which are listed or proposed to be listed on a recognised
stock exchange, in contravention of the provisions of this Act or the rules or
the regulations made thereunder;
(d) engage in
insider trading;
(e) deal in
securities while in possession of material or non-public information or
communicate such material or non-public information to any other person,
in
a manner which is in contravention of the provisions of this Act or the
rules or the regulations made thereunder;
(f) acquire control of any company or securities more than the percentage of
equity share capital of a company whose securities are listed or proposed to be
listed on a recognised stock exchange in contravention of the regulations made
under this Act.]
Amendment
59 Chapter VA inserted by the SEBI (Amendment) Act, 2002, w.e.f. 29-10-2002.