MISCELLANEOUSCentral

Section 19 of The Securities and Exchange Board of India Act, 1992

The Board may, by general or special order in writing delegate to any member,

officer of the Board or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the powers under section 29) as it may deem necessary.

Summary

The Board has the ability to share or delegate its own powers and functions to its members, officers, or even other individuals.
This delegation must be made through a general or special written order.
The Board can attach specific conditions or limits to the powers it is delegating.
However, there is one major exception: the Board is absolutely not allowed to delegate the powers mentioned in Section 29 of the Act.

Practical examples

1The Board decides it is too busy to personally review every single routine license application. It issues a written order delegating the power to approve standard applications to a senior officer, under the condition that any unusual application must still come to the main Board.

2The Board wants to create a whole new set of fundamental rules for the market. Even if they are busy, they cannot delegate the power to make these rules (covered under Section 29) to an individual officer, meaning the authorized body must handle it directly.

FAQ

1. Does a delegation of power need to be formal?

Yes, the Board must delegate its powers by using a general or special order in writing.

2. Can the Board delegate every single one of its powers?

No, the Board can delegate most powers as it deems necessary, but it is explicitly banned from delegating the powers given under section 29 of the Act.

3. Can the Board place restrictions on the person receiving the delegated powers?

Yes, the delegation is subject to such conditions as may be specified in the written order.

Test yourself

Q1.Under Section 19 of The Securities and Exchange Board of India Act, 1992, in what specific format must the Board make a delegation of its powers?

Q2.Under Section 19 of The Securities and Exchange Board of India Act, 1992, what specific set of powers is the Board completely forbidden from delegating to anyone else?

Q3.Under Section 19 of The Securities and Exchange Board of India Act, 1992, the Board can delegate most powers, but it specifically cannot delegate the powers under Section 29. Based on the Act, what kind of power is protected from delegation by this cross-reference?

Q4.Under Section 19 of The Securities and Exchange Board of India Act, 1992, to whom is the Board allowed to delegate its eligible powers?

18PreviousSection 18 Returns and reports.20NextSection 20 Appeals.

←Section 18 Section 20→