Establishment and incorporation of Board

In force From 30 Jan 1992 Act 15 of 1992 As on 19 Oct 2026

Act 15 of 1992 Ministry Finance Enacted 04 Apr 1992 In force 30 Jan 1992 Cited by 36 provisions Instruments 40

Section 3 of the Securities and Exchange Board of India Act, 1992 deals with establishment and incorporation of Board. 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. The Act came into force on 30 Jan 1992.

(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.
Section 3, 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.

Referred to by 36

and 24 more

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.

Securities & Exchange Board of India vs Ajay Agarwal

Supreme Court of India 25 Feb 2010 Binding (SC) - as a Supreme Court judgment on interpretation of SEBI Act and con Reportable

Court's Decision & Legal Precedent

Procedural provisions of law, including Section 11-B and Section 11(4)(b) of the SEBI Act, can be applied retrospectively to alleged misconduct occurring prior to the enactment of such amendments, because: (1) procedural laws apply to all actions, pending and future, and no person has a vested right in any course of procedure; (2) such application does not violate Article 20(1) of the Constitution as the respondent has not been charged with an 'offence' or subjected to a 'penalty' in the criminal law sense, but has merely been restrained from certain activities by an administrative order; (3) even if viewed as operating prospectively, the actual exercise of power by the SEBI Chairman on 31 March 2004 was lawful as the amendments were then in force; and (4) the respondent's receipt of adequate notice through the show cause notice invoking Section 11-B and fair hearing opportunity negates any procedural unfairness.

On this section: Establishment of SEBI as a body corporate

Read the full order on eCourts India

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.

High Court 03 Apr 2024 KLHC010173922020

… (ab) in relation to a capital asset, being equity share or share allotted to a shareholder of a recognised stock exchange in India under a scheme for demutilisation or corporatisation approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), shall be the cost of acquisition of his original membership of the exchange: Provided that the cost of a capital asset, being trading or clearing rights of the recognised stock exchange acquired by a shareholder who has been allotted equity …

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High Court 03 Apr 2024 KLHC010174032020

… (ab) in relation to a capital asset, being equity share or share allotted to a shareholder of a recognised stock exchange in India under a scheme for demutilisation or corporatisation approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), shall be the cost of acquisition of his original membership of the exchange: Provided that the cost of a capital asset, being trading or clearing rights of the recognised stock exchange acquired by a shareholder who has been allotted equity …

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High Court 03 Apr 2024 KLHC010174092020

… (ab) in relation to a capital asset, being equity share or share allotted to a shareholder of a recognised stock exchange in India under a scheme for demutilisation or corporatisation approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), shall be the cost of acquisition of his original membership of the exchange: Provided that the cost of a capital asset, being trading or clearing rights of the recognised stock exchange acquired by a shareholder who has been allotted equity …

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Made under this section, and citing it

40 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 3

What have the courts held on Section 3 of the Securities and Exchange Board of India Act?

Securities & Exchange Board of India vs Ajay Agarwal (25 Feb 2010) is the leading judgment on this section among those set out below: Establishment of SEBI as a body corporate.

How do I find court cases under Section 3 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 3, section 3 Sebi Act, section 3 of the Securities and Exchange Board of India Act. People searching for it also type section 3 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. 1 reported judgment on this section is set out on this page, beginning with Securities & Exchange Board of India vs Ajay Agarwal (25 Feb 2010).

What should I read with Section 3 of the Securities and Exchange Board of India Act, and has it changed?

36 other provisions in this corpus refer back to it. 40 instruments name it without being made under it, most recently Securities and Exchange Board of India (Annual Report) Rules, 2021 (2021), then (Employees' Service) Regulations, 2001 Last amended on May 08, 2019 (2019).

When did Section 3 of the Securities and Exchange Board of India Act come into force?

Section 3 of the Securities and Exchange Board of India Act, cited as Sebi Act 3, 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 19 Oct 2026. This page is not a substitute for legal advice.