1|Page

COMPANYb=LAW-I

“Emergenceb=andb=efficacyb=ofb=SEBIb=asb=theb=Superb=Bossb=isb=Issueb
=Managementb=inb=Indiab=–b=Anb=Analysis”

Submittedb=by,
Mausamb=Kumar
PRN:-b=17010223022
Division-C,
Batch-2017-22
of
Symbiosisb=Lawb=School,b=Noida
Symbiosisb=Internationalb=(Deemedb=University),b=Pune
IN
August,b=2019
Underb=theb=guidanceb=of
Mr.b=Rajnishb=Jindal
&
Ms.b=Sonakshib=Kumarb=
2|Page

CERTIFICATE
Theb=projectb=entitledb=“Emergenceb=andb=efficacyb=ofb=SEBIb=asb=theb=Superb
=Bossb=isb=Issueb=Managementb=inb=Indiab=–

b=Anb=Analysis”b=submittedb=tob=theb=Symbiosisb=Lawb=School,b=NOIDAb=forb

=Propertyb=Lawb=asb=partb=ofb=.b=Internalb=Assessmentb=isb=basedb=onb=myb=ori

ginalb=workb=carriedb=outb=underb=theb=guidanceb=ofb=Mr.b=Rajnishb=Jindalb=&b
=Ms.b=Sonakshib=Kumar,b=Theb=researchb=workb=hasb=notb=beenb=submittedb=el

sewhereb=forb=theb=awardb=ofb=anyb=degree.b=Theb=materialb=,b=borrowedb=from
b=otherb=sourcesb=andb=incorporatedb=inb=theb=“b=thesisb=hasb=beenb=dulyb=ackn

owledged.

Ib=understandb=thatb=Ib=myselfb=couldb=beb=heldb=responsibleb=andb=accountable
b=forb=plagiarism,b=ifb=any,b=detectedb=laterb=on.b=

Signature-
Date:b=b=07.08.2019
3|Page

ACKNOWLEDGMENT
Thisb=projectb=consumedb=ab=hugeb=amountb=ofb=work,b=research,b=andb=dedicat
ionb=suchb=thatb=itsb=implementationb=“b=wouldb=notb=haveb=beenb=possibleb=wi
thoutb=theb=supportb=ofb=myb=institutionb=andb=someb=individuals.b=Thusb=‘b=Ib=
wouldb=likeb=tob=extendb=myb=sincereb=gratitudeb=tob=allb=ofb=them.b=
Firstb=ofb=all,b=Ib=amb=thankfulb=to[b=Symbiosisb=Lawb=School,b=NOIDAb=forb=
providingb=meb=withb=allb=theb=resourcesb=thatb=Ib=couldb=findb=inb=theb=library
b=andb=theb=onlineb=database.b=

Ib=amb=alsob=thankfulb=tob=myb=courseb=inb=chargeb=–
b=Mr.b=Rajnishb=Jindalb=&b=Ms.b=Sonakshib=Kumar,b=forb=providingb=meb=“b=w

ithb=allb=theb=superiorb=knowledgeb=andb=expertiseb=withb=whichb=wereb=import
antb=inb=theb=carvingb=ofb=thisb=project.b=
Further,b=Ib=expressb=myb=>b=gratitudeb=tob=myb=colleaguesb=forb=theirb=kindb=
co-
operationb=andb=encouragementb=whichb=directlyb=andb=indirectlyb=helpedb=meb
=withb=theb=project.
4|Page

TABLEb=OFb=CONTENTS
1. Introduction
2. Emergenceb=ofb=SEBIb=
3. Introductionb=andb=Efficacyb=ofb=SEBI
4. SEBIb=Actb=1992:b=Anb=Overview
5. Powersb=vestedb=inb=SEBIb=tob=actb=asb=theb=Superb=Bossb=inb=regard
b=tob=Securitiesb=Exchange
6. Powerb=andb=Functionsb=ofb=SEBI
7. Powerb=tob=issueb=directions
8. Powersb=ofb=SEBIb=inb=stockb=exchangesb=
 b=Powerb=b=ofb=inspection:-b=
 Directionsb=byb=theb=Board:-b=
 Debarringb=anyb=recognisedb=stockb=exchangeb=orb=recognise
db=clearingb=corporation:-b=
 Powerb=tob=removeb=difficulties:-b=
 Powerb=tob=b=specifyb=procedures,b=etc.b=andb=issueb=clarific
ations
9. Conclusion
5|Page

Introduction
Everybmodernbeconomybisbbasedbonbsoundbfinancialbsystembwhichbhelpsbinbproductio
n,bcapitalbandbeconomicbgrowthbbybencouragingbsavingsbhabit,bmobilizingbsavingsbfro
mbhouseholdsbandbotherbsegmentsbandballocatingbsavingsbintobproductivebusagebsuchb
asbtrade,bcommerce,bmanufacture,betc

Thebmoneybmarketbrefersbtobthebmarketbwherebborrowersbandblendersbexchangebshort
-
termbfundsbtobsolvebtheirbliquiditybneeds.bMoneybmarketbinstrumentsbarebgenerallybfi
nancialbclaimsbthatbhaveblowbdefaultbrisk,bmaturitiesbunderbonebyearbandbhighbmarket
ability.

ThebCapitalbMarketbisbabmarketbforbfinancialbinvestmentsbthatbarebdirectborbindirectbc
laimsbtobcapital.bItbisbwiderbthanbthebSecuritiesbMarketbandbembracesballbformsbofble
ndingbandbborrowing,bwhetherborbnotbevidencedbbybthebcreationbofbabnegotiablebfinan
cialbinstrument.bThebCapitalbMarketbcomprisesbthebcomplexbofbinstitutionsbandbmech
anismsbthroughbwhichbintermediatebtermbfundsbandblongbtermbfundsbarebpooledbandb
madebavailablebtobbusiness,bgovernmentbandbindividuals.bThebCapitalbMarketbalsoben
compassesbthebprocessbbybwhichbsecuritiesbalreadyboutstandingbarebtransferred.

Theb=Securitiesb=Market,b=however,b=refersb=tob=theb=marketsb=forb=thoseb=financialb
=instruments/claims/obligationsb=thatb=areb=commonlyb=andb=readilyb=[b=transferableb
=byb=sale.b=Theb=Securitiesb=Marketb=hasb=twob=inter-
dependentb=andb=inseparableb=segments,b=theb=newb=issuesb=(primary)b=marketb=andb
=theb=stockb=(secondary)b=market.1b=b=

Emergenceb=ofb=SEBIb=

1
A K Majumdar, Company Law and Practice, Taxmann, (2000), at p 56.
6|Page

Beforeb=1992,b=theb=threeb=principalb=Actsb=b=governingb=theb=securitiesb=marketsb=
were:b=

(a)b=Theb=Capitalb=issuesb=(Control)b=Act,b=1947,b=whichb=restrictedb=issuersb=acces
sb=tob=theb=securitiesb=marketb=andb=controlledb=theb=pricingb=ofb=issues;b=

(b)b=Theb=Companiesb=Act,b=1956,b=whichb=setsb=outb=theb=codeb=ofb=conductb=forb
=theb=corporateb=sectorb=inb=relationb=tob=issue,b=allotmentb=andb=transferb=ofb=secur
ities,b=andb=disclosuresb=tob=beb=madeb=inb=publicb=issues;b=and

b=(c)b=Theb=Securitiesb=Contractb=(Regulation)b=Act,b=1956,b=whichb=providesb=forb=
regulationb=ofb=transactionsb=inb=securitiesb=throughb=controlb=overb=stockb=exchange
s.b=

Theb=capitalb=issuesb=(Control)b=Act,b=1947b=hadb=itsb=originb=duringb=theb=warb=in
b=1943b=whenb=theb=objectiveb=wasb=tob=channelb=resourcesb=tob=supportb=:b=b=theb
=warb=effort.b=Theb=Actb=wasb=retainedb=withb=someb=modificationsb=asb=ab=meansb
=ofb=controllingb=theb=raisingb=ofb=capitalb=byb=companiesb=andb=tob=ensureb=thatb=
nationalb=resourcesb=wereb=channeledb=intob=properb=lines,b=i.e,b=forb=desirableb=pur
poseb=tob=serveb=goalsb=andb=prioritiesb=b=?
b=ofb=theb=government,b=andb=tob=protectb=theb=interestsb=ofb=investors2
.b=Underb=theb=Act,b=anyb=firmb=wishingb=tob=issueb=securitiesb=hadb=tob=obtainb=ap
provalb=fromb=theb=Centralb=Government,b=whichb=alsob=determinedb=theb=amount,b=
typeb=andb=priceb=ofb=theb=issue.b=Majorb=partb=ofb=theb=liberalizationb=processb=wa
sb=theb=repealb=ofb=theb=capitalb=issuesb=(Control)b=Act,b=1947b=inb=Mayb=1992.b=
Withb=this,b=Government‟sb=controlb=overb=issueb=ofb=capital,b=pricingb=ofb=theb=iss
ues,b=fixingb=ofb=premiab=andb=ratesb=ofb=interestb=onb=debenturesb=etc.b=ceased.b=T
heb=officeb=whichb=administeredb=theb=Actb=wasb=abolishedb=“b=andb=theb=marketb=
wasb=allowedb=tob=allocateb=resourcesb=tob=competingb=uses.3b=Howeverb=tob=ensure
b=effectiveb=regulationb=ofb=theb=market,b=SEBIb=Act,b=1992b=wasb=enactedb=tob=em
powerb=SEBIb=withb=statutoryb=powersb=for”:-4

(a)b=protectingb=theb=interestsb=ofb=investorsb=inb=securities,

(b)b=promotingb=theb=developmentb=ofb=theb=securitiesb=market,b=and

(c)b=regulatingb=theb=securitiesb=market.

2
NSE (2009). Indian Securities Market: A Review, Mumbai: National Stock Exchange of India.
3
K.C. Garg, Company Law, Kalyani Publishers, 18th edn.
4
V.L. Iyer, SEBI Practice Manual, Taxman Allied Service P Ltd.
7|Page

b=Itsb=regulatoryb=jurisdictionb=extendsb=overb=corporateb=inb=theb=issuanceb=ofb=cap
italb=andb=transferb=theb=securitiesb=inb=additionb=tob=allb=intermediariesb=andb=perso
nsb=associatedb=withb=securitiesb=market.b=SEBIb=canb=specifyb=theb=mattersb=tob=be
b=”b=disclosedb=andb=theb=standardsb=ofb=disclosureb=requiredb=forb=theb=protectionb
=ofb=investorsb=inb=respectb=ofb=issues;b=canb=issueb=directionsb=tob=allb=intermediari
esb=andb=otherb=personsb=associatedb=withb=theb=securitiesb=marketb=inb=theb=interest
b=ofb=investorsb=orb=ofb=orderlyb=developmentb=forb=securitiesb=market;b=andb=canb=
conductb=enquiries,b=auditsb=andb=inspectionb=ofb=allb=concernedb=andb=:b=adjudicate
b=offencesb=underb=theb=Act5
.b=Inb=short,b=itb=hasb=beenb=givenb=necessaryb=autonomyb=andb=authorityb=tob=regul
ateb=andb=developb=anb=orderlyb=securitiesb=market.

Introductionb=andb=Efficacyb=ofb=SEBI
“Theb=Governmentb=hasb=setb=upb=theb=Securitiesb=&b=Exchangeb=Boardb=ofb=Indiab
=(SEBI)b=inb=April,b=1988.b=Forb=moreb=thanb=threeb=years,b=itb=hadb=nob=statutoryb
=powers.b=Itsb=interimb=functionsb=“b=duringb=theb=periodb=wereb=(i)b=Tob=collectb=i
nformationb=andb=adviceb=theb=Governmentb=onb=mattersb=relatingb=tob=Stockb=andb
=Capitalb=Marketsb=(ii)b=Licensingb=andb=regulationb=ofb=merchantb=banks,b=mutualb
=fundsb=etc.b=(iii)b=Tob=prepareb=theb=legalb=draftsb=forb=regulatoryb=andb=developm
entb=roleb=ofb=SEBIb=andb=(iv)b=Tob=performb=anyb=otherb=functionsb=asb=mayb=beb
=entrustedb=tob=itb=byb=theb=Government6.b=

Theb=needb=forb=settingb=upb=independentb=Govt.b=agencyb=tob=regulateb=andb=devel
opb=theb=Stockb=andb=Capitalb=Marketb=inb=Indiab=asb=inb=manyb=developedb=countr
iesb=wasb=recognisedb=sinceb=theb=Sixtyb=Fiveb=Yearb=Planb=wasb=launchedb=(1985)
b=whenb=someb=majorb=industrialb=policyb=changesb=likeb=openingb=upb=ofb=theb=ec
onomyb=tob=outsideb=worldb=andb=greaterb=roleb=tob=theb=Privateb=Sectorb=wereb=ini
tiated.b=Theb=rampantb=malpracticesb=:b=noticedb=inb=theb=Stockb=andb=Capitalb=Mar
ketb=stoodb=inb=theb=wayb=ofb=infusingb=confidenceb=ofb=investorsb=whichb=isb=nece
ssaryb=forb=mobilisationb=ofb=largerb=quantityb=ofb=fundsb=fromb=theb=publicb=andb=
helpb=theb=growthb=ofb=theb=industry7.

Theb=malpracticesb=wereb=noticedb=inb=theb=caseb=ofb=companies,b=merchantsb=bank
ersb=andb=brokersb=whob=areb=allb=operatingb=inb=theb=Capitalb=Market.b=Theb=need
b=tob=curbb=theseb=malpracticesb=andb=tob=promoteb=healthyb=Capitalb=Marketb=inb=I
5
Securities laws and Compliances, The Institute of Company Secretaries of India
6
Sanjeev Aggarwal, Guide to Indian Capital Market, Bharat Law House.
7
Shah, Ajay (1999). “Institutional Change on India’s Capital Markets,” Economic and Political Weekly, 34(3-4), 183-
194.
8|Page

ndiab=wasb=felt.b=Theb=securityb=:b=industryb=inb=Indiab=hasb=tob=developb=onb=theb
=rightb=linesb=forb=whichb=ab=competentb=Govt.b=agencyb=asb=inb=U.K.b=(SIB)b=orb=
inb=U.S.A.b=(SEC)b=isb=needed8.b=

Asb=referredb=tob=earlier,b=malpracticesb=haveb=beenb=reportedb=inb=bothb=theb=prim
aryb=marketb=andb=seondaryb=market.b=Ab=fewb=examplesb=ofb=“b=malpracticesb=inb
=theb=primaryb=marketb=areb=asb=follows9:b=

a)b=Toob=manyb=selfb=styleb=Investmentb=Advisorsb=andb=Consultants.

b=b)b=Greyb=Marketb=orb=unofficialb=premiumsb=onb=theb=newb=issues.b=

c)b=Manipulationb=ofb=marketb=pricesb=beforeb=newb=issuesb=areb=floated.b=

d)b=Delayb=inb=allotmentb=lettersb=orb=refundb=ordersb=orb=inb=despatchb=ofb=shareb=
certificates.b=

e)b=Delayb=inb=listingb=andb=commencementb=ofb=tradingb=inb=shares.b=

Ab=fewb=examplesb=ofb=malpracticesb=inb=theb=secondaryb=Marketb=areb=asb=follow
s10:b=

a) Lackb=ofb=transperancyb=inb=theb=tradingb=operationsb=andb=pricesb=chargedb=t
ob=clients.
b) b=Poorb=servicesb=dueb=!
b=tob=delayb=inb=passingb=contractb=notesb=orb=notb=passingb=contractb=notes,b
=atb=all.b=
c) Delayb=inb=makingb=paymentsb=tob=clientsb=orb=inb=givingb=deliveryb=ofb=shar
es.b=
d) Persistenceb=ofb=oddb=lotsb=andb=refusalb=ofb=companiesb=tob=stopb=thisb=prac
ticeb=ofb=allottingb=sharesb=inb=b=“b=oddb=lots.b=
e) Insiderb=tradingb=byb=agentsb=ofb=companiesb=orb=brokersb=riggingb=andb=man
ipulatingb=prices.b=
f) Takeoverb=bidsb=tob=destabiliseb=management.b=

 Theb=SEBIb=hasb=beenb=entrustedb=withb=bothb=theb=regulatoryb=andb=developme
ntalb=functions.b=Theb=objectivesb=ofb=SEBIb=areb=asb=follows:b=

8
Black, Bernard S, and Khanna, Vikramaditya S (2007). “Can Corporate Governance Reforms Increase Firm Market
Values? Event Study Evidence from India,” Journal of Empirical Legal Studies, 4(4), 749-796.
9
S. Suryanarayanan, V. Varadarajan, SEBI – Law, Practice & Procedure, Commercial Law Publishers Pvt. Ltd..
10
Mamta Bhargava, Compliances and Procedures under SEBI Law, Shreeji Publishers.
9|Page

a.b=Investorb=protection,b=sob=thatb=thereb=isb=ab=steadyb=flowb=ofb=savingsb=i
ntob=theb=Capitalb=Market.
b=b.b=Ensuringb=theb=fairb=“b=practicesb=byb=theb=issuersb=ofb=securities,b=na
mely,b=companiesb=sob=thatb=theyb=canb=raiseb=resourcesb=atb=leastb=cost.
b=c.b=Promotionb=ofb=efficientb=servicesb=byb=brokers,b=merchantb=bankersb=a
ndb=otherb=intermediariesb=sob=thatb=theyb=becomeb=competitiveb=andb=profess
ional.b=

Pendingb=theb=legislativeb=sanctionb=tob=SEBIb=itb=carriedb=@b=outb=theb=functionsb
=ofb=supervisoryb=andb=advisoryb=bodyb=ofb=theb=Govt.b=Itb=hasb=initiatedb=theb=bas
isb=forb=controlb=andb=regulationb=ofb=theb=market,b=arrangedb=forb=theb=licensingb=b
=“b=ofb=merchantb=banks,b=mutualb=fundsb=etc.b=andb=performedb=theb=advisoryb=fun
ctionsb=tob=theb=Government”.b=

SEBIb=Actb=1992:b=Anb=Overview
“

Powersb=vestedb=inb=SEBIb=tob=actb=asb=theb=Superb=Bossb=inb=regardb=t
ob=Securitiesb=Exchange
“Forb=theb=dischargeb=ofb=itsb=functionsb=efficiently,b=SEBIb=hasb=beenb=investedb=withb=
theb=necessaryb=powersb=whichb=are:b=

1.b=Tob=approveb=by-lawsb=ofb=stockb=exchanges.b=

2.b=Tob=requireb=theb=stockb=exchangeb=tob=amendb=theirb=by−laws.b=

3.b=Inspectb=theb=booksb=ofb=accountsb=andb=callb=forb=periodicalb=returnsb=fromb=recogn
isedb=stockb=exchanges.b=

4.b=Inspectb=theb=booksb=ofb=accountsb=ofb=ab=financialb=intermediary.b=

5.b=Compelb=certainb=companiesb=tob=listb=theirb=sharesb=inb=oneb=orb=moreb=stockb=exc
hanges.b=

6.b=Levyb=feesb=andb=otherb=chargesb=onb=theb=intermediariesb=forb=performingb=itsb=func
tions.b=
10 | P a g e

7.b=Grantb=licenceb=tob=anyb=personb=forb=theb=purposeb=ofb=dealingb=inb=certainb=areas.
b=

8.b=Delegateb=powersb=exercisableb=byb=it.b=

9.b=Prosecuteb=andb=judgeb=directlyb=theb=violationb=ofb=certainb=provisionsb=ofb=theb=co
mpaniesb=Act.

Powerb=andb=Functionsb=ofb=SEBI
Chapterb=IVb=ofb=SEBIb=Act,b=1992b=dealsb=withb=theb=powersb=andb=functionsb=of
b=theb=Board.b=Sectionb=11b=ofb=theb=Actb=laysb=downb=thatb=itb=shallb=beb=theb=du
tyb=ofb=SEBIb=tob=protectb=theb=interestsb=ofb=theb=investorsb=inb=securitiesb=andb=t
ob=promoteb=theb=developmentb=of,b=andb=tob=regulateb=theb=securitiesb=marketsb=by
b=suchb=measuresb=asb=itb=thinksb=fit.b=Theseb=measuresb=wouldb=include11:b=

a. regulatingb=theb=businessb=inb=stockb=exchangesb=andb=anyb=otherb=securitiesb
=markets;b=
b. b=registeringb=andb=regulatingb=theb=workingb=ofb=stockb=brokers,b=sub-
brokers,b=shareb=transferb=b=b=b=agents,b=bankersb=tob=anb=issue,b=trusteesb=of
b=trustb=deeds,b=registrarsb=tob=anb=issue,b=merchantb=bankers,b=underwriters,b
=portfoliob=managers,b=investmentb=advisersb=andb=suchb=otherb=intermediarie
sb=whob=mayb=beb=associatedb=withb=securitiesb=marketsb=inb=anyb=manner;b=
c. Registeringb=andb=regulatingb=theb=workingb=ofb=theb=depositories,b=participan
ts,b=custodiansb=ofb=securities,b=foreignb=institutionalb=investors,b=creditb=ratin
gb=agenciesb=andb=suchb=otherb=intermediariesb=asb=SEBIb=may,b=byb=notific
ation,b=specifyb=inb=thisb=behalf;
d. b=Registeringb=andb=regulatingb=theb=workingb=ofb=ventureb=capitalb=fundsb=a
ndb=collectiveb=investmentb=schemes,b=includingb=mutualb=funds;
e. Promotingb=andb=regulatingb=self-regulatoryb=organisations;b=
f. Prohibitingb=fraudulentb=andb=unfairb=tradeb=practicesb=relatingb=tob=securities
b=markets;
g. Promotingb=investorsb=educationb=andb=trainingb=ofb=intermediariesb=ofb=secur
itiesb=markets;b=
h. prohibitingb=insiderb=tradingb=inb=securities;b=
i. regulatingb=substantialb=acquisitionb=ofb=sharesb=andb=takeoverb=ofb=companie
s;
j. b=callingb=forb=informationb=from,b=undertakingb=inspection,b=conductingb=inq
uiriesb=andb=auditsb=ofb=theb=stockb=exchanges,b=mutualb=funds,b=otherb=pers
11
Supra note, 8, section 11
11 | P a g e

onsb=associatedb=withb=theb=securitiesb=market,b=b=intermediariesb=andb=self-
regulatoryb=organisationsb=inb=theb=securitiesb=market;
k. b=callingb=forb=informationb=andb=recordb=fromb=anyb=bankb=orb=anyb=otherb
=authorityb=orb=boardb=orb=corporationb=establishedb=orb=constitutedb=byb=orb
=underb=anyb=central,b=stateb=orb=provincialb=Actb=inb=respectb=ofb=anyb=tran
sactionb=inb=securitiesb=whichb=isb=underb=investigationb=orb=inquiryb=byb=SE
BI;b=
l. performingb=suchb=functionsb=andb=exercisingb=suchb=powersb=underb=theb=pr
ovisionsb=ofb=theb=Securitiesb=Contractsb=(Regulation)b=Act,b=1956,b=asb=may
b=beb=delegatedb=tob=itb=byb=theb=Centralb=Government;
m. levyingb=feesb=orb=otherb=chargesb=forb=carryingb=outb=theb=purposesb=ofb=thi
sb=section;b=conductingb=researchb=forb=theb=aboveb=purposes;b=
n. callingb=fromb=orb=furnishingb=tob=anyb=suchb=agencies,b=asb=mayb=beb=speci
fiedb=byb=SEBI,b=suchb=informationb=asb=mayb=beb=consideredb=necessaryb=b
yb=itb=forb=theb=efficientb=dischargeb=ofb=itsb=functions;b=
o. performingb=suchb=otherb=functionsb=asb=mayb=beb=prescribed.b=

 Asb=perb=Sectionb=11(4)b=SEBI,b=may,b=byb=anb=orderb=orb=forb=reasonsb=tob=be
b=recordedb=inb=writingb=takeb=anyb=ofb=theb=followingb=measuresb=eitherb=pendi
ngb=investigationb=orb=inquiryb=orb=onb=completionb=ofb=suchb=investigationb=orb
=enquiry12:b=

a.b=suspendb=theb=tradingb=ofb=anyb=securityb=inb=ab=recognisedb=stockb=exchange.

b.b=restrainb=personsb=fromb=accessingb=theb=securitiesb=marketb=andb=prohibitb=anyb
=personb=associatedb=withb=securitiesb=marketb=tob=buy,b=sellb=orb=dealb=inb=securiti
es.

c.b=suspendb=anyb=office-
bearerb=ofb=anyb=stockb=exchangeb=orb=selfb=regulatoryb=organisationb=fromb=holding
b=suchb=position.b=

d.b=impoundb=andb=retainb=theb=proceedsb=orb=securitiesb=inb=respectb=ofb=anyb=tran
sactionb=whichb=isb=underb=investigation.b=

e.b=b=attachb=forb=ab=periodb=notb=exceedingb=oneb=month,b=withb=priorb=approvalb=
ofb=ab=magistrate,b=oneb=orb=moreb=bankb=accountsb=ofb=anyb=intermediaryb=orb=any

12
V.K. Bhalla, Investment Management - Security Analysis and Portfolio Management, S. Chand & Co. Ltd.
12 | P a g e

b=personb=associatedb=withb=theb=securitiesb=marketb=inb=anyb=ofb=theb=Actb=orb=rul
esb=orb=regulationsb=madeb=thereunder.

f.b=directb=anyb=intermediaryb=orb=anyb=personb=associatedb=withb=theb=securitiesb=m
arketb=inb=anyb=mannerb=notb=tob=disposeb=ofb=orb=alienateb=anb=assetb=formingb=pa
rtb=ofb=anyb=transactionb=whichb=isb=underb=investigation”

Powerb=tob=issueb=directions
b=“Saveb=asb=otherwiseb=providedb=inb=sectionb=11,b=ifb=afterb=makingb=orb=causing
b=tob=beb=madeb=anb=enquiry,b=theb=Boardb=isb=satisfiedb=thatb=itb=isb=necessary,-
b=b=inb=theb=interestb=ofb=investors,b=orb=orderlyb=developmentb=ofb=securitiesb=mark
et;b=orb=

 Tob=preventb=theb=affairsb=ofb=anyb=intermediaryb=orb=otherb=personsb=referre
db=tob=inb=sectionb=12b=beingb=conductedb=inb=ab=mannerb=detrimentalb=tob=t
heb=interestb=ofb=investorsb=orb=securitiesb=market;b=orb=b=
 b=tob=secureb=theb=properb=managementb=ofb=anyb=suchb=intermediaryb=orb=pe
rson,b=itb=mayb=b=b=issueb=suchb=directions,-
b=b=tob=anyb=personb=orb=classb=ofb=personsb=referredb=tob=inb=sectionb=12,b=
orb=associatedb=withb=b=theb=securitiesb=market;b=orb=b=b=tob=anyb=companyb=
inb=respectb=ofb=mattersb=specifiedb=inb=sectionb=11A,b=asb=mayb=beb=appropr
iateb=inb=theb=interestsb=ofb=investorsb=inb=securitiesb=andb=theb=securitiesb=m
arket.

Powersb=ofb=SEBIb=inb=stockb=exchangesb=

Powerb=tob=callb=forb=information:-
b=Theb=Boardb=mayb=fromb=timeb=tob=timeb=callb=forb=anyb=information,b=document
sb=orb=recordsb=fromb=theb=recognisedb=stockb=exchangeb=orb=theb=recognisedb=clear
ingb=corporation,b=orb=theirb=governingb=boardb=orb=anyb=shareholderb=thereof13.b=

b=Powerb=ofb=inspection:-
b=Theb=Boardb=mayb=atb=anyb=timeb=undertakeb=inspection,b=conductb=inquiri
esb=andb=auditb=ofb=anyb=recognisedb=stockb=exchangeb=orb=recognisedb=cleari
ngb=corporation,b=anyb=associateb=ofb=suchb=exchangeb=orb=clearingb=corporati
on,b=anyb=shareholderb=ofb=suchb=stockb=exchangeb=orb=clearingb=corporationb
=orb=anyb=associateb=andb=agentb=ofb=suchb=shareholder.b=b=

13
Mamta Bhargava, Compliances and Procedures under SEBI Law, Shreeji Publishers.
13 | P a g e

Directionsb=byb=theb=Board:-
b=Withoutb=prejudiceb=tob=exerciseb=ofb=itsb=powersb=underb=theb=provisionsb
=ofb=theb=Actb=orb=theb=Securitiesb=andb=Exchangeb=Boardb=ofb=Indiab=Act,b=
1992b=andb=rulesb=andb=regulationsb=madeb=thereb=under,b=theb=Boardb=may,b
=eitherb=suob=motub=orb=onb=receiptb=ofb=anyb=informationb=orb=duringb=pend
encyb=ofb=anyb=inspection,b=inquiryb=orb=investigationb=orb=onb=completionb=t
hereof,b=inb=theb=interestb=ofb=publicb=orb=tradeb=orb=investorsb=orb=theb=secu
ritiesb=market,b=issueb=suchb=directionsb=asb=itb=deemsb=fit,b=includingb=butb=
notb=limitedb=tob=anyb=orb=allb=ofb=theb=followingb=directingb=ab=personb=hol
dingb=equityb=sharesb=orb=rightsb=overb=equityb=sharesb=inb=ab=recognisedb=st
ockb=exchangeb=orb=recognisedb=clearingb=corporationb=inb=contraventionb=b=o
fb=theseb=regulationsb=tob=divestb=hisb=holding,b=inb=suchb=mannerb=asb=mayb
=beb=specifiedb=inb=theb=direction;b=
b=
Debarringb=anyb=recognisedb=stockb=exchangeb=orb=recognisedb=clearingb=co
rporation:-
b=anyb=shareholderb=ofb=suchb=recognisedb=stockb=exchangeb=orb=recognisedb=
clearingb=corporation,b=orb=anyb=associateb=andb=agentb=ofb=suchb=shareholder
,b=orb=anyb=transfereeb=ofb=sharesb=fromb=suchb=shareholder,b=directorsb=andb
=keyb=managementb=personnelb=ofb=recognisedb=stockb=exchangeb=andb=recog
nisedb=clearingb=corporationb=fromb=accessingb=theb=securitiesb=marketb=orb=d
ealingb=inb=securitiesb=forb=suchb=periodb=asb=mayb=beb=determinedb=byb=theb
=Board.b=b=b=
b=
Powerb=tob=removeb=difficulties:-
b=Inb=orderb=tob=removeb=anyb=difficultiesb=inb=theb=interpretationb=orb=applic
ationb=ofb=theb=provisionsb=ofb=theseb=regulations,b=theb=Boardb=shallb=haveb=
theb=powerb=tob=issueb=directionsb=throughb=guidanceb=notesb=orb=circulars.b=b
=
b=
Powerb=tob=b=specifyb=procedures,b=etc.b=andb=issueb=clarifications:-
b=Forb=theb=purposesb=ofb=implementationb=ofb=theseb=regulationsb=andb=matt
ersb=incidentalb=thereto,b=theb=Boardb=mayb=specifyb=norms,b=procedures,b=pro
cesses,b=mannersb=orb=guidelinesb=asb=specifiedb=inb=21b=theseb=regulations,b=
byb=wayb=ofb=circularsb=tob=b=recognisedb=stockb=exchange(s)b=andb=recognis
edb=clearingb=corporation(s).”b=b=

Conclusion
14 | P a g e

“Theb=enactmentb=ofb=theb=SEBIb=Actb=withinb=theb=contextb=ofb=otherb=statutesb=s
uchb=asb=theb=Companiesb=Actb=hasb=providedb=ab=strongb=regulatoryb=frameworkb=f
orb=theb=Indianb=market.b=Subsequentlyb=muchb=ofb=theb=growthb=ofb=theb=Indianb=
marketb=canb=beb=attributedb=tob=theb=robustb=processesb=forb=issuance,b=pricing,b=al
lotmentb=andb=listingb=ofb=securitiesb=enabledb=byb=SEBI.b=Strengtheningb=SEBI'sb=p
owerb=inb=theb=investigative,b=administrativeb=andb=legalb=aspectsb=ofb=enforcementb
=wouldb=enableb=itb=tob=speedilyb=addressb=legalb=challengesb=suchb=asb=thoseb=face
db=duringb=dematerializationb=orb=disclosureb=requirements.b=Asb=perb=myb=understa
ndingb=itb=stillb=lacksb=someb=transparencyb=andb=inb=future,b=SEBIb=shouldb=adoptb
=moreb=transparencyb=tob=gainb=higherb=publicb=confidence.b=“

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