Accounts and audit
Section 15 of the Securities and Exchange Board of India Act, 1992 deals with accounts and audit. The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. The Act came into force on 30 Jan 1992.
(1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General of India.
(3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Board.
(4) The accounts of the Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.
Section 15, The Securities and Exchange Board of India Act, 1992 (Act 15 of 1992).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Quantum Global Securities and Leasing Company LTD vs Securities and Exchange Board of India
Court's Decision & Legal Precedent
The conditions stipulated in clauses (a), (b) and (c) of Section 15J of the SEBI Act are illustrative in nature and not exhaustive. The Adjudicating Officer has discretion to consider other circumstances beyond those enumerated in Section 15J while determining the quantum of penalty under Sections 15A to 15HA. The power and discretion vested by Section 15J is not eclipsed by the penalty provisions in Sections 15A to 15HA, and the Explanation to Section 15J added by Act No. 7 of 2017 clarifies that the Adjudicating Officer shall have deemed to have always exercised this discretion in determining penalties. These provisions must be read harmoniously to avoid conflict and inconsistency.
On this section: Power of Adjudicating Officer on completion of inquiry to impose such penalty as he thinks fit in accordance with penalty provisions
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Magnum Equity Broking LTD vs Securities and Exchange Board of India
Court's Decision & Legal Precedent
The conditions stipulated in clauses (a), (b), and (c) of Section 15J of the SEBI Act, 1992 are illustrative in nature and not exhaustive. The Adjudicating Officer has discretion to consider circumstances beyond those enumerated in Section 15J while determining penalty quantum under Sections 15A to 15HA. Section 15J was never eclipsed by amendments to Sections 15A-15HA, and the Explanation added by Act No. 7 of 2017 clarified this legislative intent. The power to impose "such penalty as he thinks fit" under Section 15I(2) supports this discretionary approach. However, the imposition of penalty itself depends on satisfaction of substantive provisions in Sections 15A-15HA, not on satisfaction of Section 15J conditions.
On this section: Adjudicating Officer's power to impose penalty as he thinks fit in accordance with relevant penalty provisions; interpreted to support discretionary approach under Section 15J.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Civil Appeal No(s). 2402 of 2008 1. The instant appeal has been filed under Section 15(Z) of the Securities and Exchange Board of India Act, 1992(hereinafter being referred to as the "Act 1992") assailing the judgment and order dated 9th August, 2007 passed by the Securities Appellate Tribunal(hereinafter being referred to as the "Tribunal") affirming the order of the Securities and Exchange Board of …
Made under this section, and citing it
4 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- Securities Appellate Tribunal (Salaries and Allowances and other Conditions of Service of the Officers and Employees) Rules, 1997Rule 1997
- the Securities Appellate Tribunal (Salaries and Allowances and Other Conditions of Service of the Officers and Employees) Rules, 1997.Rule 1997
- SEBI (Form of Annual Statement of Accounts and Records) Rules, 1994Rule 1994
- the Securities and Exchange Board of India (Form of Annual Statement of Accounts and Records) Rules, 1994.Rule 1994
Another 4 instruments name this provision in its title or its text without being made under it.
- SEBI (Settlement Proceedings) Regulations, 2018Regulation 2018
- Securities Appellate Tribunal (Procedure) Rules, 2000Rule 2000
- SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995Rule 1995
- the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995.Rule 1995
Questions about Section 15
What have the courts held on Section 15 of the Securities and Exchange Board of India Act?
Quantum Global Securities and Leasing Company LTD vs Securities and Exchange Board of India (28 Feb 2019) is the leading judgment on this section among those set out below: Power of Adjudicating Officer on completion of inquiry to impose such penalty as he thinks fit in accordance with penalty provisions. Another 1 judgment on this section is set out below, all of them from the Supreme Court.
How do I find court cases under Section 15 of the Securities and Exchange Board of India Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Sebi Act 15, section 15 Sebi Act, section 15 of the Securities and Exchange Board of India Act. People searching for it also type securities and exchange board of india act 1992 15 of 1992 and section 15t of the securities and exchange board of india act 1992. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Quantum Global Securities and Leasing Company LTD vs Securities and Exchange Board of India (28 Feb 2019).
What should I read with Section 15 of the Securities and Exchange Board of India Act, and has it changed?
5 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 4: most recently Securities Appellate Tribunal (Salaries and Allowances and other Conditions of Service of the Officers and Employees) Rules, 1997 (1997), then the Securities Appellate Tribunal (Salaries and Allowances and Other Conditions of Service of the Officers and Employees) Rules, 1997. (1997), and 2 more.
When did Section 15 of the Securities and Exchange Board of India Act come into force?
Section 15 of the Securities and Exchange Board of India Act, cited as Sebi Act 15, came into force on 30 Jan 1992, having been enacted on 04 Apr 1992. It is in force as at the date shown on this page.
Other sections of this Act
- 11. Functions of Board1315 words
- 11C. Investigation1145 words
- 12. Registration of stock-brokers, sub-brokers, share transfer agents, etc678 words
- 28A. Recovery of amounts629 words
- 15U. Procedure and powers of the Securities Appellate Tribunal494 words
- 15D. Penalty for certain defaults in case of mutual funds464 words
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. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.