The Securities and Exchange Board of India Act, 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.
Administered by. Ministry of Finance, Department of Economic Affairs · Other Acts of 1992
Preamble
THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992
ACT NO. 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:--
What this Act covers
Summary of the Securities and Exchange Board of India Act, 1992
1. Securities and Exchange Board of India Act, 1992 (SEBI Act, 1992)
*Purpose: Establishes the Securities and Exchange Board of India (SEBI) to regulate and develop the securities market, protect investor interests, and ensure fair market practices. *Key Provisions:
• Establishment & Management: SEBI is a body corporate with a Chairman, whole-time members, and part-time members, overseeing market regulation.
• Powers & Functions: Includes regulating securities markets, issuing directions, conducting investigations, and imposing penalties for non-compliance.
• Penalties & Offences: Specifies penalties for various violations (e.g., failure to furnish returns, insider trading), with amounts detailed in amendments (e.g., ₹5 lakh to ₹25 crore for certain offences).
• Judicial Mechanism: References the establishment of Special Courts for securities-related offences.
2. Securities Contracts (Regulation) Act, 1956 (SCR Act, 1956)
*Relevant Summary from Context: *Key Provisions (Penalties & Regulations):
• Penalties for Non-Compliance:
• Failure to furnish periodical returns or comply with SEBI directions: ₹5 lakh to ₹25 crore.
• Failure to conduct business as per SEBI rules: ₹5 crore to ₹25 crore or 3 times the gains.
• Stock Exchange Governance: Regulations for recognition, corporatisation, and demutualisation of stock exchanges.
3. Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992
*Summary: *Key Provisions:
• Establishment of Special Court: Comprises sitting High Court Judges for trial of securities offences.
• Hearing and Orders: Special Court hears parties and makes orders as deemed fit, especially concerning notifications, cancellations, or orders related to securities transactions.
• Timeframe for Action: Actions must be taken within thirty days of the issuance of such notifications, cancellations, or orders.
Sections
Type to filter. 92 sections.
- 1Short title, extent and commencement
- 2Definitions
- 3Establishment and incorporation of Board
- 4Management of the Board
- 5Term of office and conditions of service of Chairman and members of the Board
- 6Removal of member from office
- 7Meetings
- 7AMember not to participate in meetings in certain cases
- 8Vacancies, etc., not to invalidate proceedings of Board
- 9Officers and employees of the Board
- 10Transfer of assets, liabilities, etc., of existing Securities and Exchange Board to the Board
- 11Functions of Board
- 11ABoard to regulate or prohibit issue of prospectus, offer document or advertisement soliciting money for issue of securities
- 11AACollective investment scheme
- 11BPower to issue directions and levy penalty
- 11CInvestigation
- 11DCease and desist proceedings
- 12Registration of stock-brokers, sub-brokers, share transfer agents, etc
- 12AProhibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control
- 13Grants by the Central Government
- 14Fund
- 15Accounts and audit
- 15APenalty for failure to furnish information, return, etc
- 15BPenalty for failure by any person to enter into agreement with clients
- 15CPenalty for failure to redress investors‟ grievances
- 15DPenalty for certain defaults in case of mutual funds
- 15EPenalty for failure to observe rules and regulations by an asset management company
- 15EAPenalty for default in case of alternative investment funds, infrastructure investment trusts and real estate investment trusts
- 15EBPenalty for default in case of investment adviser and research analyst
- 15FPenalty for default in case of stock brokers
- 15GPenalty for insider trading
- 15HPenalty for non-disclosure of acquisition of shares and takeovers
- 15HAPenalty for fraudulent and unfair trade practices
- 15HAAPenalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board
- 15HBPenalty for contravention where no separate penalty has been provided
- 15-IPower to adjudicate
- 15JFactors to be taken into account while adjudging quantum of penalty
- 15JACrediting sums realised by way of penalties to Consolidated Fund of India
- 15JBSettlement of administrative and civil proceedings
- 15KEstablishment of Securities Appellate Tribunals
- 15LComposition of Securities Appellate Tribunal
- 15MQualification for appointment as Presiding Officer or Member of Securities Appellate Tribunal
- 15MAAmendment of Presiding Officer and Judicial Member
- 15MBSearch-cum-Selection Committee for appointment of Technical Members
- 15MCVacancy not to invalidate selection proceeding
- 15NTenure of office of Presiding Officer and other Members of Securities Appellate Tribunal
- 15OSalary and allowances and other terms and conditions of service of Presiding Officers
- 15PFilling up of vacancies
- 15PAMember to act as Presiding Officer in certain circumstances
- 15QResignation and removal
- 15QAQualifications, terms and conditions of service of Presiding Officer and Member
- 15ROrders constituting Appellate Tribunal to be final and not to invalidate its proceedings
- 15SStaff of the Securities Appellate Tribunal
- 15TAppeal to the Securities Appellate Tribunal
- 15UProcedure and powers of the Securities Appellate Tribunal
- 15VRight to legal representation
- 15WLimitation
- 15XPresiding Officer, Members and staff of Securities Appellate Tribunals to be public servants
- 15YCivil Court not to have jurisdiction
- 15ZAppeal to Supreme Court
- 16Power of Central Government to issue directions
- 17Power of Central Government to supersede the Board
- 18Returns and reports
- 19Delegation
- 20Appeals
- 20ABar of jurisdiction
- 21Savings
- 22Members, officers and employees of the Board to be public servants
- 23Protection of action taken in good faith
- 24Offences
- 24AComposition of certain offences
- 24BPower to grant immunity
- 25Exemption from tax on wealth and income
- 26Cognizance of offences by courts
- 26AEstablishment of Special Courts
- 26BOffences triable by Special Courts
- 26CAppeal and revision
- 26DApplication of Code to proceedings before Special Court
- 26ETransitional provisions
- 27Contravention by companies
- 28Omitted
- 28ARecovery of amounts
- 28BContinuance of proceedings
- 28CPowers of Board not to apply to International Financial Services Centre
- 29Power to make rules
- 30Power to make regulations
- 31Rules and regulations to be laid before Parliament
- 32Application of other laws not barred
- 33Repealed
- 34Power to remove difficulties
- 34AValidation of certain acts
- 35Repeal and saving
Schedules
This Act has 1 schedule. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.
- THE SCHEDULE22 words
Amending Acts
1 Act amending this enactment, passed by Parliament of India. The text above is the consolidated text as published.
- The Securities Laws (Amendment) Act, 199915 of 1999
Rules made under this Act
40 sets of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.
- Securities and Exchange Board of India (Annual Report) Rules, 20212021
- (Employees' Service) Regulations, 2001 Last amended on May 08, 20192019
- SEBI (Prohibition of Insider Trading) Regulations, 2015 (Last amended on January 21, 2019)2019
- Securities and Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018 (last amended on September 23, 2019)2019
- Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) (Amendment) Regulations, 20192019
- the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 last amended on May 10, 2019.2019
- the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018. last amended on 29.07.20192019
- the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2019.2019
- the Securities and Exchange Board of India (Custodian of Securities) Regulations, 1996.Last amended on 22.03.20192019
- the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993. Last amended on May 07, 20192019
- the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 20192019
- the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.2019
- the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. Last amended on 23.09.20192019
- the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 (last amended on 22.04.2019)2019
- the Securities and Exchange Board of India (Regulatory Fee on Stock Exchanges) Regulations, 2006. Last amended on March 22, 20192019
- the Securities and Exchange Board of India (Stock Brokers) Regulations, 1992. Last amended on April 01, 20192019
- the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers Regulations, 2011.last amended on July 29, 20192019
- the Securities and ExchangeBoard of India (Delisting of Equity Shares) Regulations,2009. (last amended on July 29, 20192019
- SEBI (Bankers to an Issue) Regulations, 1994 Last amended on May 30, 20182018
- SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 Last amended on December 31, 20182018
- SEBI (Settlement Proceedings) Regulations, 20182018
- Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations Regulations, 2018 Last amended on June 04, 20192018
- Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 20182018
- Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 Last amended on June 04, 20192018
- Securities and Exchange Board of India (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008 Last amended on October 09, 20182018
- the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013. (last amended on October 09, 2018)2018
- the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations,1993. Last amended on May 30, 20182018
- SEBI (Merchant Bankers) Regulations, 1992 Last amended on March 6, 20172017
- Securities and Exchange Board of India (Self Regulatory Organizations) Regulations, 2004. Last amended on March 6, 20172017
- the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999. Last amended on March 06, 20172017
- the Securities and Exchange Board of India (Foreign Venture Capital Investor) Regulations, 2000 last amended on March 6, 20172017
- the Securities and Exchange Board of India (Intermediaries) Regulations, 2008. Last amended on November 21, 20172017
- the Securities and Exchange Board of India (Investor Protection and Education Fund) Regulations, 2009 (Last amended on March 6, 2017)2017
- the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014. (last amended on March 06, 2017)2017
- the Securities and Exchange Board of India (Underwriters) Regulations, 1993. Last amended on March 6, 20172017
- the Securities and Exchange Board of India KYC (Know Your Client) REGISTRATION AGENCY Regulations, 2011.(last amended on March 6, 2017)2017
- the Securities and Exchange Board of India (Research Analysts) Regulations, 2014.(last amended on December 08, 2016)2016
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Last amended on July 29, 2019)2015
- the Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015.2015
- Companies (Issue of Global Depositories Receipts) Rules, 20142014
Related Acts
- The Finance Act, 1992109 sections
- The Special Court (Trial of Offences Relating to Transactions in Securities) Act, 199219 sections
- The Finance Act, 1991120 sections
- The Recovery Of Debts And Bankruptcy Act, 199345 sections
- The Finance Act, 199343 sections
- The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 199312 sections
- The Remittances of Foreign Exchange and Investment in Foreign Exchange Bonds (Immunities and Exemptions) Act, 19917 sections
- The Gold Bonds (Immunities and Exemptions) Act, 19936 sections
Ordinances
India Code records no parent Act for an ordinance, so these are tied to this Act by their own titles and their dates rather than by anything the source states. An ordinance is made when Parliament is not sitting and lapses six weeks into the next session unless it is enacted.
- The Securities and Exchange Board of India (Amendment) Ordinance, 2013amended this Act · 2013
- The Securities and Exchange Board of India (Amendment) Ordinance, 2002.amended this Act · 2002
- The Securities and Exchange Board of India Ordinance, 1992enacted as this Act · 1992
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. 91 of 92 sections have their own page; for the remaining 1 the source gave us a heading and no text, so their pages carry the heading and say so rather than showing words we do not hold. This page is not a substitute for legal advice.