Section 29 of The Securities and Exchange Board of India Act, 1992
- (1)The Central Government may, by notification, make rules for carrying out the purposes of this Act.
- (2)In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 1. The Explanation ins. by Act 21 of 2019, s. 42 and the Sch. II (w.e.f. 21-2-2019).
- (a)the term of office and other conditions of service of the Chairman and the members under sub-section (1) of section 5;
- (b)the additional functions that may be performed by the Board under section 11; 1* ; (d) the manner in which the accounts of the Board shall be maintained under section 15; 2[(da) the manner of inquiry under sub-section (1) of section 15-I; (db) the salaries and allowances and other terms and conditions of service of the 3[Presiding Officers, Members] and other officers and employees of the Securities Appellate Tribunal under section 15-O and sub-section (3) of section 15S;
- (dc)the procedure for the investigation of misbehaviour or incapacity of the 4[Presiding Officers, or other Members] of the Securities Appellate Tribunal under sub-section (3) of section 15Q;
- (dd)the form in which an appeal may be filed before the Securities Appellate Tribunal under section 15T and the fees payable in respect of such appeal;]
- (e)the form and the manner in which returns and report to be made to the Central Government under section 18;
- (f)any other matter which is to be, or may be, prescribed, or in respect of which provision is to be, or may be, made by rules.
↩2.Ins. by Act 13 of 2018, s. 190 (w.e.f. 8-3-2019).
↩3.Ins. by Act 50 of 2019, s. 33 and the Sch. II (w.e.f. 1-10-2020).
Summary
- The Central Government has the power to make rules to carry out the purposes of the Act.
- These rules are made official by publishing a notification.
- The rules dictate the term of office and conditions of service for the Chairman and Board members, as outlined in Section 5.
- The rules can grant the Board additional functions beyond its standard duties, as referenced in Section 11.
- The rules prescribe the specific manner in which the Board must maintain its accounts, as required by Section 15.
Practical examples
FAQ
1. Who has the authority to make rules under this section?
The Central Government has the exclusive power to make these rules.
2. How are these rules made public?
They are made public through an official notification.
3. Can the Central Government control how the Board keeps its financial records?
Yes, the Central Government uses this rule-making power to specify exactly how the Board's accounts must be maintained.
Test yourself
Q1.Under Section 29 of The Securities and Exchange Board of India Act, 1992, which authority is granted the power to make rules to carry out the purposes of the Act?
Q2.Under Section 29 of The Securities and Exchange Board of India Act, 1992, read with Section 5, how are the term of office and conditions of service for the Chairman established?
Q3.Under Section 29 of The Securities and Exchange Board of India Act, 1992, read with Section 11, how can the Board be assigned extra duties beyond its standard regulatory tasks?
Q4.Under Section 29 of The Securities and Exchange Board of India Act, 1992, read with Section 15, who dictates the manner in which the accounts of the Board must be kept?