Central

Section 7 of The Preference Shares (Regulation of Dividends) Act, 1960

(1)The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(2)Every rule made under this section shall be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Summary

The Central Government has the power to make rules to carry out the goals of this Act.
These rules must be announced by publication in the Official Gazette, which is the official public record.
Every rule made under this section must be presented before each House of Parliament as soon as possible after it is made.
The rules must be placed before Parliament while it is in session for a total of thirty days, which can be completed within a single session or across two successive sessions.
If both Houses agree to modify the rule or agree that it should not be made before the session expires, the rule will only have effect in the modified form or have no effect at all.
Any such modification or cancellation by Parliament does not affect the validity of anything previously done under that rule.

Practical examples

1In November 2026, the Ministry of Finance wants to clarify how companies should report their preference dividend increases. The Central Government drafts a rule and publishes it in the Official Gazette. The rule is immediately sent to both Houses of Parliament. If Parliament is in session, the 30-day clock begins to run so lawmakers can review it.

2The government introduces a rule regarding tax calculations under the Act. It is laid before Parliament for 15 days in the Winter Session, and then for another 15 days in the Budget Session, making 30 days total. During the Budget Session, both Houses agree to remove a specific reporting requirement from the rule. This change becomes active immediately, but any reports companies already filed during those first 30 days remain perfectly valid.

FAQ

1. Who has the authority to make rules under Section 7?

The Central Government has the authority to make these rules.

2. How must the rules be announced to the public?

The rules must be announced by notification in the Official Gazette.

3. How long must the rules be laid before Parliament for review?

The rules must be laid before each House of Parliament for a total period of thirty days.

4. Can the thirty-day parliamentary review period be split across multiple sessions?

Yes, the thirty days can be comprised in one session or in two successive sessions.

5. What happens if both Houses of Parliament agree to modify or reject a rule?

The rule will thereafter only have effect in the modified form, or it will have no effect at all, though anything previously done under that rule remains valid.

Test yourself

Q1.Who is authorized to make rules for carrying out the purposes of this Act under Section 7?

Q2.How must the rules made under Section 7 be announced?

Q3.What is the total period for which a rule must be laid before each House of Parliament?

Q4.In how many sessions can the thirty-day parliamentary review period be completed?

Q5.If a rule is modified or cancelled by Parliament, what is the status of actions already taken under that rule?

Q6.When must a rule be laid before each House of Parliament?

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