Section 30 of The Securities and Exchange Board of India Act, 1992
- (1)The Board may, 5*** by notification, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act.
- (2)In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:—
- (a)the times and places of meetings of the Board and the procedure to be followed at such meetings under sub-section (1) of section 7 including quorum necessary for the transaction of business;
- (b)the term and other conditions of service of officers and employees of the Board under sub-section (2) of section 9; 6[(c) the matters relating to issue of capital, transfer of securities and other matters incidental thereto and the manner in which such matters shall be disclosed by the companies under section 11A; 7[(ca) the utilisation of the amount credited under sub-section (5) of section 11; (cb) the fulfilment of other conditions relating to collective investment scheme under sub-section (2A) of section 11AA;]
- (d)the conditions subject to which certificate of registration is to be issued, the amount of fee to be paid for certificate of registration and the manner of suspension or cancellation of certificate of registration under section 12;] 8[(da) the terms determined by the Board for settlement of proceedings under sub-section (2) and the procedure for conducting of settlement proceedings under sub-section (3) of section 15JB;
- (db)any other matter which is required to be, or may be, specified by regulations or in respect of which provision is to be made by regulations.]
Summary
- The Board has the power to make its own regulations via notification to carry out the Act.
- These regulations must not conflict with the Act itself or any rules made by the Central Government.
- The regulations set the times, places, and procedures for the Board's meetings, including the required quorum, as mentioned in Section 7.
- The regulations determine the terms and conditions of service for the Board's officers and employees, as noted in Section 9.
- The regulations cover how companies issue capital, transfer securities, and make disclosures, linking to Section 11A, and also dictate how the Board utilizes its fund under Section 11.
Practical examples
FAQ
1. Who is responsible for making regulations under this section?
The Board has the power to make these regulations.
2. Can the Board write a regulation that contradicts the main Act?
No, all regulations must be consistent with the Act and the rules made by the Central Government.
3. Can the Board dictate how ordinary companies issue their shares?
Yes, the Board's regulations can cover matters relating to the issue of capital and how companies must disclose this information.
Test yourself
Q1.Under Section 30 of The Securities and Exchange Board of India Act, 1992, what is the primary condition placed on the regulations created by the Board?
Q2.Under Section 30 of The Securities and Exchange Board of India Act, 1992, read with Section 7, how are the specific procedures and quorum for the Board's meetings established?
Q3.Under Section 30 of The Securities and Exchange Board of India Act, 1992, read with Section 9, how are the terms and conditions of service for the Board's regular employees determined?
Q4.Under Section 30 of The Securities and Exchange Board of India Act, 1992, read with Section 11, what financial aspect can the Board manage by making regulations?