Section 31 of The Securities and Exchange Board of India Act, 1992
Every rule and every regulation made
under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such
↩2.Ins. by s. 16, ibid. (w.e.f. 25-1-1995).
↩3.Subs. by Act 59 of 2002, s. 31, for “Presiding Officers” (w.e.f. 29-10-2002).
↩4.Subs. by s. 31, ibid., for “Presiding Officers” (w.e.f. 29-10-2002).
↩6.Subs. by Act 9 of 1995, s. 17, for clause (c) (w.e.f. 25-1-1995).
↩7.Ins. by Act 27 of 2014, s. 22 (w.e.f. 18-7-2013).
↩8.Ins. by s. 22, ibid. (w.e.f. 18-7-2013).
1. Clause (c) omitted by Act 9 of 1995, s. 16 (w.e.f. 25-1-1995). 5. The words “with the previous approval of the Central Government” omitted by Act 9 of 1995, s. 17 (w.e.f. 25-1-1995).
modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.
Summary
- Every rule and regulation created under this Act must be presented before each House of Parliament.
- The documents must be laid before Parliament for a total period of thirty days.
- This thirty-day period can happen entirely within one session, or it can be spread across two or more successive sessions.
- Parliament has the power to agree to modify the rule or regulation, or declare that it should not be made at all.
- If a rule or regulation is modified or cancelled by Parliament, any actions already taken under it before the cancellation remain legally valid.
Practical examples
FAQ
1. Who gets to review the final rules and regulations?
Both Houses of Parliament must review every rule and regulation.
2. How much time does Parliament have to review them?
They are laid before Parliament for a total period of thirty days.
3. Does the thirty-day review have to happen all in one sitting?
No, the thirty days can happen during one session or be spread across two or more successive sessions.
4. If Parliament cancels a rule, do past actions under that rule become illegal?
No, the cancellation is without prejudice to the validity of anything previously done under that rule.
Test yourself
Q1.Under Section 31 of The Securities and Exchange Board of India Act, 1992, what must happen to every rule and regulation after it is created?
Q2.Under Section 31 of The Securities and Exchange Board of India Act, 1992, how much total time must a rule or regulation be laid before Parliament?
Q3.Under Section 31 of The Securities and Exchange Board of India Act, 1992, what happens if Parliament decides that a newly made regulation should not be made?
Q4.Under Section 31 of The Securities and Exchange Board of India Act, 1992, if Parliament annuls a regulation after twenty days, what is the legal status of actions taken under that regulation during those first twenty days?