Notification under section 29A - Powers exercisable by Central Government delegated to SEBI - [F. No. 1/57/SE/93], - Companies Law

Notification: No. NIL [F. No. 1/57/SE/93], dated 13-9-1994, issued by the Department of Economic Affairs (ECB and Investment Division), Ministry of Finance, Government of India. Subject:- Notification under section 29A - Powers exercisable by Central Government delegated to SEBI In exercise of powers conferred by section 29A of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Central Government hereby directs that the powers exercisable by it under section 3, sub-sections (1), (2), (3) and (4) of section 54, section 5, sub-section (2) of section 7A, section 13, sub-section (2) of section 18, section 22, and sub-section (2) of section 28 of the Act shall also be exercisable by the Securities and Exchange Board of India. Annex Press Note, dated 13-9-1994, issued by the Department of Economic Affairs, Ministry of Finance, Government of India 1. The Government have decided to delegate concurrently to the SEBI several of its powers under the Securities Contracts (Regulation) Act, 1956. Section 29A of the Act provides for such delegation. 2. In pursuance of this objective, Government have issued a Notification here today in the Gazette of India Extraordinary for delegating the following powers: ( i ) Section 3 relating to the submission of applications for the recognition of Stock Exchanges; ( ii ) Sub-sections (1), (2), (3) and (4) of section 4 relating to the grant of recognition to Stock Exchanges; ( iii ) Section 5 relating to the withdrawal of recognition of a Stock Exchange; ( iv ) Sub-section (2) of section 7A relating to making or amending Rules or Articles of Association of a Stock Exchange regarding voting rights of members of a Stock Exchange at any meeting; ( v ) Section 13 relating to issue of Notification declaring this section to apply to an area, consequent upon which contracts issued in that area otherwise than between members of a recognised Stock Exchange or through or with such member shall be illegal; ( vi ) Sub-section (2) of section 18 relating to regulation and control of the business of dealing in spot delivery contracts; ( vii ) Section 22 relating to hearing appeals submitted by companies against refusal of a Stock Exchange to list their securities; ( viii ) Sub-section (2) of section 28 relating to issue of a Notification specifying any class of contracts as contracts to which the SCR Act or any provision contained therein shall not apply. 3. The powers now delegated are in addition to those delegated on 30-7-1992, to SEBI under sections 4(5), 7, 8, 11, 12 and 16 of the Act. 4. With the delegation of these additional powers, it is envisaged that SEBI will exercise most of the powers under the Act. The delegation of these additional powers to SEBI is intended to ensure a more effective protection of the interests of investors and to create an efficient and well-regulated stock market.