Section 21 of The Securities and Exchange Board of India Act, 1992
Nothing in this Act shall exempt any person from any suit or other proceedings which
might, apart from this Act, be brought against him.
Summary
- This law does not protect anyone from facing other legal problems or lawsuits outside of this Act.
- Just because a person is dealt with under this Act does not mean they are immune from other civil or criminal cases being brought against them.
- Other legal proceedings can still happen based on different laws.
Practical examples
FAQ
1. If the Board already punished me, can someone else still sue me for the same event?
Yes. Being punished under this Act does not exempt you from other legal claims or lawsuits that could otherwise be brought against you.
2. Does this Act wipe away my liabilities under other laws?
No, it specifically saves the rights of others to bring suits against you outside of this Act.
Test yourself
Q1.Under Section 21 of The Securities and Exchange Board of India Act, 1992, what is the primary legal effect of the "Savings" provision on a person penalized under the Act?
Q2.Under Section 21 of The Securities and Exchange Board of India Act, 1992, if a stock broker is suspended by the Board, can a defrauded client still file a civil lawsuit against the broker for damages?
Q3.Under Section 21 of The Securities and Exchange Board of India Act, 1992, which types of external proceedings are allowed to continue against a person?
Q4.Under Section 21 of The Securities and Exchange Board of India Act, 1992, does this section grant extra powers to the Board?