Section 24B of The Securities and Exchange Board of India Act, 1992
- (1)The Central Government may, on recommendation by the Board, if the Central Government is satisfied, that any person, who is alleged to have violated any of the provisions of this Act or the rules or the regulations made thereunder, has made a full and true disclosure in respect of the alleged violation, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act, or the rules or the regulations made thereunder or also from the imposition of any penalty under this Act with respect to the alleged violation: Provided that no such immunity shall be granted by the Central Government in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of application for grant of such immunity: Provided further that recommendation of the Board under this sub-section shall not be binding upon the Central Government.
- (2)An immunity granted to a person under sub-section (1) may, at any time, be withdrawn by the Central Government, if it is satisfied that such person had, in the course of the proceedings, not complied with the condition on which the immunity was granted or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the contravention and shall also become liable to the imposition of any penalty under this Act to which such person would have been liable, had not such immunity been granted.]
Summary
- The Central Government has the power to grant a person immunity from prosecution or penalties for violating the rules of the Act.
- To get this immunity, the Board must recommend it, and the person must make a full and true disclosure about the violation.
- Immunity cannot be granted if prosecution proceedings have already started against the person before they apply.
- The Central Government is not forced to grant immunity just because the Board recommends it.
- If the person later breaks the conditions of their immunity or gives false evidence, the Central Government can withdraw the immunity and put them on trial.
Practical examples
FAQ
1. Who actually gives the final approval for immunity?
The Central Government gives the final approval, though the Board must make the initial recommendation.
2. Is the Central Government required to give me immunity if the Board says yes?
No, the Board's recommendation is not binding on the Central Government.
3. Can I apply for immunity after my criminal trial has already begun?
No, immunity cannot be granted if prosecution proceedings were instituted before the date your application was received.
4. What happens if I hide facts after getting immunity?
If you fail to comply with conditions or give false evidence, your immunity can be withdrawn, and you will face trials and penalties for the offence.
Test yourself
Q1.Under Section 24B of The Securities and Exchange Board of India Act, 1992, what is a mandatory requirement for a person to be considered for immunity?
Q2.Under Section 24B of The Securities and Exchange Board of India Act, 1992, which entity holds the ultimate power to grant immunity from prosecution?
Q3.Under Section 24B of The Securities and Exchange Board of India Act, 1992, what happens if the Board formally recommends a person for immunity?
Q4.Under Section 24B of The Securities and Exchange Board of India Act, 1992, under what circumstance is the Central Government strictly forbidden from granting immunity?