Section 3 of The Securities and Exchange Board of India Act, 1992
- (1)With effect from such date as the Central Government may, by notification, appoint, there shall be established, for the purposes of this Act, a Board by the name of the Securities and Exchange Board of India.
- (2)The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.
- (3)The head office of the Board shall be at Bombay.
- (4)The Board may establish offices at other places in India.
Summary
- The Central Government establishes the Board by publishing a formal notice.
- The Board is a body corporate (a legally recognised organisation) with a common seal and perpetual succession, meaning it continues to exist even if its people change.
- The Board has the power to buy, hold, and sell property, and to make contracts.
- The Board has the right to sue others and can be sued in its own name.
- The head office must be in Bombay, but it can open other offices anywhere in India.
Practical examples
FAQ
1. Where is the main headquarters of the Board?
The head office of the Board shall be at Bombay.
2. Can the Board open branches in other cities?
Yes, it may establish offices at other places in India.
3. What happens to the Board if the Chairman leaves?
The Board continues to exist because it has perpetual succession.
Test yourself
Q1.Under Section 3 of The Securities and Exchange Board of India Act, 1992, who has the authority to establish the Board?
Q2.Under Section 3 of The Securities and Exchange Board of India Act, 1992, where is the head office of the Board located?
Q3.Under Section 3 of The Securities and Exchange Board of India Act, 1992, which of the following is a power granted to the Board as a body corporate?
Q4.Under Section 3 of The Securities and Exchange Board of India Act, 1992, what happens if the Board wishes to open a branch in Delhi?
Q5.Under Section 3 of The Securities and Exchange Board of India Act, 1992, the Board is described as having perpetual succession. What does this practically mean for contracts?