Section 24A of The Securities and Exchange Board of India Act, 1992
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Act, not being an offence punishable with imprisonment only, or with imprisonment and also with fine, may either before or after the institution of any proceeding, be compounded by a Securities Appellate Tribunal or a court before which such proceedings are pending.
Summary
- This section allows certain offences to be compounded (settled legally without a full criminal trial) even if they violate the Code of Criminal Procedure, 1973.
- An offence can be settled either before a legal proceeding starts or while it is already pending.
- Settlement is only allowed for offences that have flexible punishments, not for severe offences that are punished strictly by prison time alone, or strictly by both prison time and a fine.
- The power to approve this settlement belongs to a Securities Appellate Tribunal or the court where the proceedings are taking place.
Practical examples
FAQ
1. Can I settle any offence under this Act?
No, you cannot settle an offence if the law specifically states the punishment must be imprisonment only, or mandatory imprisonment plus a fine.
2. Do I have to wait for a trial to start before I can settle?
No, you can settle the offence either before the legal proceeding is instituted or after it has started.
3. Who has the final say on whether I can settle my case?
A Securities Appellate Tribunal or the court handling your pending case has the authority to approve the settlement.
Test yourself
Q1.Under Section 24A of The Securities and Exchange Board of India Act, 1992, which type of offence is strictly excluded from being compounded (settled)?
Q2.Under Section 24A of The Securities and Exchange Board of India Act, 1992, who has the formal power to compound an offence?
Q3.Under Section 24A of The Securities and Exchange Board of India Act, 1992, at what stage of a legal dispute can an offence be compounded?
Q4.Under Section 24A of The Securities and Exchange Board of India Act, 1992, the rules for compounding offences operate notwithstanding (despite) anything contained in which other law?