REGISTEREL NO. DL-33004 / 2002 wi?lwm EXTRAORDINARY m I I - - ~ l ~
PART I1 - Section 1 m*- PUBLISHED BY AUTHORITY ?iO 591 if, 29, 2002 1 Wf?k 7, 1924 No. 591 NEW DELHI, TUESDAY, OCTOBER 29,2002 I KARTIKA 7,1924 ~ r ~ m 3 f n m p a a ~ * * $ m f B ; ' 4 ~ m ~ d ; m 4 m w * l Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE (LegislativeDepartment) ' New Delhi, the 29th October; 2002lkhrtika 7 , 1924 (Saka) (AMENDMENT) OWINA-NCE, 2002 No. 6 OF 2002 Promulgated by the President in the Fifty-third Year of the Republic of India.
. An Ordinance further to amend the ~ecuriti 'es an'd Exchange Board of lndia Act,
1992.
WHEREAS Parliament is not in session and the President is satisfied that circuinstances exist which render it necessary for him to take immediate action; .
Now, THEREFORE, in exercise of the powers conferred 5 y clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:.-
1. ( I ) This Ordinance may be called the Securities and Exchange Board of lndia short title and (Amendment) Ordinance, 2002. commencement.
(2) It shall come into force at once.
. ' :G, 1 5 o f 1992. 2: sectid62 of the ~ $ ~ r b i t i e $ a r i d ~ x c h a i n ~ e ~ o a i - d of India Act, 1992 (hereinafter ,\msndlllrnt of - . . . referred to as the princip~.J,~ct),, ai'ter . . . clitise (h), ttiefolldwiiig 6la"Sk shall be in.serted, Secli"n 2 , . . . . . . . . . . . . -. -,:*.. . . , , . .'namely:- , , , '.
, .
.... . . . . . . ..- . -, . ;; :.>Z'+':'::Z . . . . . . - <. 5 . . . . . . . . -.
. . ' (ha) "Re-setve~Bank"::means'the Res,erve Bank of India constituted under 2 @I934 .
. . : .section 3 of th.e.Rexl~ve Bank.of India Act, 1934;'.
. . . . . . ' . . . . . ' . . , 2 THE GAZETIE OF INDIA EXTRAORDINARY PART 11- Amendment 3. In section 4 of the principal Act,- of section 4.
(a) in sub-section ( I ) , - - (i) in clause (b), for the words "and Law", the words and figures "and P- administration of the Companies Act, 1956" shall be substituted; 1 of 1956.
(ii) in clause (c), for the words and figures "the Reserve Bank of India \ constituted under section 3 of the ~ e s e d e Bank of India Act, 1934", the 2 of 1934.
words "the Reserve Bank" shall be substituted;
(die for clause ( 4 , the following clause shall be substituted, namely:- "(4 five other members of whom at least three shall be the wholetime members,";
(b) in sub-skction (4), for the words "Reserve Bank of India", the words "Reserve Bank" shall be substituted. .
Amendment 4. In section 1 1 of the principal Act ,- of section I I .
(a) in sub-section (2), after clause (9, the following clause shall be inserted, namely:- "(ia) calling for information and record from any bank or any other authority ai board or corporation established or constituted by ar under any central, State or Provincial Act in respect of any transaction in securities which are under investigation or inquiry by the Board;";
(b) after sub-section (2), the following sub-section shall be inserted, namely:- ' "(2A) Without prejudice to..&e provisions contained in sub-section
(2) , the Board may take measures to undertake inspection of any book, or register, or other document or record of any listed public company or a public company (not being intermediaries referred to in section 12) which intends to get its securities listed on any recognised stock exchange ,where the board has reasonable grounds to believe that such company has been indulging in insider trading or fraudulent and unfair trade practices relating to sec~rities market.";
. .* y ( c ) in sub-section (3),-
(i) in the opening portion, for the words, brackets and figures "clause
(i) of sub-section (2)", the words, brackets, figures and letters "clause ( i ) or clause (ia) of sub-section (2) or sub-section (2A)" shall be substitutfd;
(ii) after clause (iii), the following clause shall be inserted at the end, namely :- "(iv) inspection of any book, or register, or other document or record of the company referred to in section (2A);
\
(v) issuing commissions for -the examination of witnesses or doclments.";
I .
- (4 after. sub-sectio? (33, the fullowing s u b - ~ p f i o p ?hall be L s e M , . - > ~ n&ely:- I "(4) Without prejudice to the provisions contained in sub-sections (I), (2), (2A) and (3) and section 1 l ~ , the Board may, by an order, for reasons : i - to be recorded in writing, in the interests of investors or securities market, 'take ahy of the following measures, either pending investigation or inquiry . . . or on completion of such investigation or inquiry, namely:- .
R
(a) suspend the trading .of any ,security in a recognised stock1 .. - exchange; i -A SEC. I ] THE GAZETTE OF INDIA EXTRAORDINARY 3
(b) restrain persons from accessing the securities market and prohibit any person associated with securities market to buy, sell or - deal in securities;
(c) suspend ady office-bearer of any stock exchange or selfregulatory organisation from holding such position;
(4 impound and retain the proceeds or securities in respect of any transaction which is under investigation;
(e) attach after passing of an order on an application made for approval, by the Judicial Magistrate of first class having jurisdiction, for a period not exceeding one month, one or more bank account or accounts of any intermediary or any person associated with the securities market in any manner involved in violation of any of the provisions of this Act, or fhe rules or the regulations made thereunder :
Provided that only the bank account or accounts or any transaction entered therein, so far as it relates to the proceeds actually involved in violation of any of the provisions of this Act, or the rules orihe regulations made thereunder shall be allowed;
V) direct any intermediary or any person associated with the securities market in any manner not to dispose of or alienate an asset forming part of any transaction which is under investigation:
Provided that the Board may, without prejudice to the provisions contained in sub-section (2) or sub-section (2A), take any of {he measures specified in clause (d) or clause (e) or clause (n, in respect of a n y listed public company or a public company (not being intermediaries referred to in section 12) which intends to get its securities listed on any recognised stock exchange where the Board has reasonable grounds to believe that such company has been indulging'in insider trading or fraudulent and unfair trade practices relating to securities market :
Provided further that the Board shall, either before or after passing such orders, give an opportunity of hearing to such intermediaries or persons concerned.".
5. For section I 1A of the principal Act, the following section shall be substituted, Substitution of namely :- new section for section 1 I A "Board to - 1 IA. (I) Withoht prejudice to the provisions of the regulateor Companies Act, 1956, the Board may, for the protection of I of 1956.
prohibit issue of prospectus, investors,- offer (a) specify, by regulations - or advertisement , (i) the matters relating to issue of capital, transfer of soliciting ' securities and other matters incidental thereto; and money for issue of (ii) the manner in which such matters shall be disclosed securities. by the companiei; - .
' (b) by general or special orders- (0 prohibit any company from issuing of prospectus, any offer document, or advertisement soliciting money from the public for the issue of,securities, i , . . . : ' . ..; :... .. . . ; . . . r : . . . ~(i~~,speci,Ey;:::the.iconditions subject to which the . . . .: . ..
. . proSpectus, such offer document-ar advertisement, .. . if npt prohibited, may be issueb.
4 THKAZETTE OF MDIA EXTRAORDINARY [PART II-
(2) Without prejudice to the provisions of section 21 of the Securities Contracts (Regulation) Act, 1956, the Board may specify 42 of 1956.
the requirements for listing and transfer of securities and other \ matters inoidenta1,thereto.".
- Insertion o f 6. After section Lll3 of the principal Act, the following sections shall be inserted, new sections namely:- 11C and 11D.
"Investigation. 1 IC. ( I ) Where the Board has reasonable ground to believe ' that-
(a) the transactions in securities are being dealt with in a manner detrimental to the investors or the securities market; or
(b) any intermediary or any person associated with the securities market has violated any of the provisions of this Act or the rules or the regulations made or directions issued by the Board thereunder, it may, at any time by order in writing, direct any person (hereafter in this section referred to as the lnvestigating Authority) specified in the order to investigate the affairs of such intermediary or persons associated with the securities market and to report thereon to the Board.
(2) Without prejudice to the provisions of sections 235 to 241 of the Companies Act, 1956, it shall be the 1 of 1956 duty of every manager, managing director, officer and other employee of the company and every intermediary refereed to in section 12 or every person associated with the securities market to preserve and to produce to the lnvestigating Authority or any person authorised by him - in this behalf, all the books, registers, other documents and record of, or relating to, the company or, as the case may be, of or relating to, the intermediary or spch person, which are in their custody or power.
(3) The lnvestigating Authority may require any intermediary or any person associated with securities market in any manner to furnish such inforrntilio~~ to, or produce such books, or registers, or other documents, or record before him or any person authorised by him in this behalf as he may consider necessary if the furnishing of such information or the.production of such books, or registers, or other documents, or record is relevant or -necessary for the purposes of its investigation.
(4) The lnvestigating Authority may keep in its custody any books, registers, other documents and record produced under sub-section (2) or sub-section , (3) for six months and thereafter shall return the same to any intermediary or any person associated with securities . market by whom or on whose befialf the books, registers, other documents and record are produced : -
Provided that the lnvestigating Authority may call for any book, register, other document and record if they are needed again :
SEC. I ] THE GAZE7TE OF INDIA EXTRAORDMARY 5
Provided further that if the person on whose behalf the books, registers, other documents and record are produced requires certified copies of the books, registers, I other documents and record produced before the Investigating Authority, it shall give ceqified copies of such books, registers, other documents and record to such person or on whose behalf the books, registers, other documents and record were produced.
(5) Any person, directed to make an investigation I under sub-section (I), examine on oath, any manager, managing director, officer and other employee of any intermediary or any person associated with securities I market jn any manner, in relation to the affairs of his business and may administer an oath accordingly and for that purpose may require any of those persons to appear before him personally.
(6) If any person fails without reasonable cause or refuses- -
(a) to produce to an Investigating Authority or any person authorised by him in this behalf any book, register, other document and record which it is his duty under sub-section (I) or sub-section (3) to produce; or
(b) to furnish any information which it is his duty. under sub-section (3) to furnish; or
(c) to appear before the Investigating Authority personally when required to do so under sub-section (5) or to answer any question which is put to him by the Investigating Authority in pursuance of that sub-section; or (4 to sign the notes of any examination referred to in sub-section (7), he shall be punishable with imprisonment for a term which may extend to one year, or with fine, which may extend to one crore rupees, or with both, and also with a further fine which may extend to five lakh rupees for every day I after the first during which the failure or refusal continues.
(7) Notes of any examination under sub-section (2) shall be taken down in writing and shall be read over to, or by, and signed by, the person examined, and may thereafter be used in evidence against him.
(8) Where in the course of investigation, the Investigating Authority has rea~onable~gr~und to believe that the books, registers, other documents and record of, I or relating to, any intermediary or any person associated , with securities market in any manner, may be dcstroyed, mutilated, altered. falsified or secreted, the Investigating Authority may make an application to the Judicial Magistrate of the first class having jurisdiction for an order for the seizure of such books, registers, other docmenti and record.
(9) After considering the application and hearing the Investigating Authority, if necessary, the Magistrate may, by order, authorise the Investigating Authority -
(a) to enter, with such assistance, as may be , required, the place or places where such books, registers, other documents and recod are kept;
(6) to search that place or those places in the manner specified in the order; and
(c) to seize books, registers, other documents and record it considers necessary for the purposes of the investigation:
Provided that the Magistrate shall not authorise seizure of books, registers, other documents and record, of listed public company or a public company (not being the intermediaries specified under section 12) which intends to get its securities listed on any recognised stock exchange unless such company indulges in insider trading or market manipulation.
(10) 'The Investigating Authority shall keep in its custody the books, registers, -otllcr documents and record seized under this section for such period not later than the conclusion of the investigation as it considers necessary and thereafter shall return the same to the company or the other body corporate, or, as the case may be, to the managing director or the manager or any other person, from whose custody or power they were seized and inform the Magistrate of such return:
Provided that the Investigating Authority may, .before returning such books, registers, other documents and record as aforesaid, place identification marks on them or any part thereof. '
(11) Save as otherwise provided in this section, every search or seizure made under this section shall be carried out in accordance with the provisions of the , Code of Criminal Procedure, 1973 relating to searches or seizures made under that Code.
casemddcsist klb, If the Board finds,/after causing an inquiry to be made, that any person m i n e . has viviblated, or is likely to violate, any provisions of this Act, or any rules or regulationscmade thereunder, the Board may pass an order requiring such person to cease and desist from committing or causing such violation:
. . .: - -PfO\isd tha-:'-th&B~&j shall l~ot pass such or&r in respect of listed public c6&fiwy &:pttbli&&dmpgfiy (&iher:thAn the: intefi&diuie~ specified under--section , - 1%); : $bi& - .gilt&& '.;.,to ::&st '- : its: seca~itiis :,listed on any rekogn ised :stock exchange . unless the Boaid has reisonable gibunds to believe that such company has. indulged in insider trading- or market manipulation.".
SEC. I ] GAZETTE OF MDIA EXTRAORDINARY , , 7 I I . . . ' ' ' 7. A k r Chapter v of &e iriacipal Act, the folloribg chap& shall be inserted, Insertion o f j p namely:- VA "Chapter VA PROHIBITIONOF MW#WLATIVIE AND DECEPI1VE DEWXS, BiSDER I TRADING AND SUBSTANTIAL ACQUISITION OF SECURITIES OR CONTROL
12A. No person shall directly or indirectly-
(a) use or employ, in connection with the issue, purchase or safe of any securities listed or prqposed to be listed in a recognized stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of this Act or the rules or the regulations made thereunder;
( b ) employ any device, scheme or artifice to defraud in connection with issue or dealing in securities which are listed or proposed to be listed in a recognized stock exchange;
Prshibition o f menipul* tive m d .deceptive devices.
im-i&r trading and substantial acquisition o f secmitief or control.
(c ) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person, in connection with the issue, dealing in securities which are listed or proposed to be listed in a recognized stock exchange, in contravention of the provisions of this Act or the rules or the regulations made thereunder;
(6) engage in insider trading;
(e) deal in securities while in possession of material or non-public information or communicate such material or non-public information to any other person, in a manner which is in contravention of the provisions of this ' Act or the rules or the regulations made thereunder;
(f) acquire control of any company or securities more than the percentage of equity share capital of a company whose securities are listed ' or proposed to be listed in a recognized stock exchange in contravention of the regulations made under this Act.".
8. In section 14 of the principal Act, in sub-section ( I ) , clause (aa) shall be Amendment of omitted. section 14.
9. In section 15A of the principal Act,-- Amendment of section 15A.
(i) in clause (a), for the words "a penalty not exceeding one lakh and fifty thousand rupees", the words "a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, which~ver is less" shall be substituted;
( i i ) in clause (b), for the words "a penalty not exceeding five thousand rupees for every day during which such failure continues", the words "a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less" shall be substituted;
(iifi ih Banse ,@), f& the word6 "R ,&#I$ qot h$ce&pg ~ n ~ b o d -: .
rhpeis for e v a y day &ring which the failure continues", the words "a penalty c# = one lakh rupees for cash day during which, such failure continups or one erort rupees, whichever is less" shall,be substituted.
10. In section 15B of the principal Act, for the words "a,penalty not Amcndmnt of exceeding five lakh rupees", tbe words "a penalty of one lakh rupees for each day IS& during which such failure continues or one crore rubes, whichever is less" shall be substituted.
4 8 THE GAZETTE OF INDIA EXTRAORDMARY [PART II- ~ubs;tuti?n of 11. )or section 15C of the principal Act, the following section shall be substituted, new section for namely:-' section 15C.
"Penally 15C. If any listed company or any person who is for failure registered as an intermediary, after having been called upon to redress investors' by the Board in writing, tg redress the grievances of investors, fails to redress such grievances within the time specified by " . the Board, such company or intermediary shall be liable to a penalty of one Iakh rupees for each day during which such failure continuesor one crore rupees:whichever is less.".
Amendment o f 12. In section 15D of the principal Act, - section-l 5D.
(i) in clause (a), for the words "a penalty not exceeding ten thousand rupees for each day during which tie carries on any collective investment scheme including mutual funds, or ten lakh rupees, whichever is higher", the words "a penalty of one lakh rupees for each day during which he sponsors or carries on any collective investment scheme including mutual funds or one crore rupees, whichever is less" shall be substituted;
(ii) in clause (b), for the words "a penalty not exceeding ten thousand rupees for each day during which such failure continues or ten lakh rupees, whichever is higher'.', the words " a penaity of one lakh rupees for each day . during ~ h i c h such failure continues orone crore rupees. whichever is less" shall be substituted;
(rii) in ?lause (c), for the words " a penalty not exceeding five thousand rupees for each day during which such fzilure continues or five lakh rupees, whichever is higher", the words " a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less" shall be mbstituted;
(iv) in clause (4, for the words " a penalty nof exceeding orle thousand rupees for each day during which such failure continues", the words "a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less" shall be substituted;
jv) in clause (e), for the words "a penalty not exceeding one thousand rupees for each day during which such failure continues", the word5 "a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, , whichever is less" shall be substituted;
(vi) in clause 0, for the words "a penalty not exceeding five lakh rupees for 4 each such failure". the words "a penalty of one lakh rupees for each day during which such failure continues or one crore rupees; whichever is less" shall be substituted.
Amendmen1 or 13. in section 15E of the principal Act, for the words " a penalty not exceeding ISE five lakh rupees for each such failure", the words "a penalty of one lakh rupees for each day during which such failure continues or h e crore rupees, whichever is less" shall be substituted.
Anlendnier~t of 14. In section 15F of the principal Act ,- section 151:.
'
(i) ia clause (b), for the words "a penalty not exceeding fiveihousand rupees for each day during which such failure continues", the words "a penalty of one lakh rupees for each day during which such faiIurc continues or onecrore rupees, - which~ver is less" shall be substituted.
N ,(ii) i n clause (c). for the words,"a.penalty not exceeding five thousand - rupees", the words "a penalty of one lakh rupees" shall be substituted.
SEC. 11 THE GAZElTE OF INDIA EXTRAORDINARY 9
115. In section 1 5 ~ of the principal Act;for the words "five lakh rupees", the Amendment of words "twenty-five crore rup6es or three times the amount of ljrofits made out of lSd.
insider trading, whichever is higher" shall be substituted.
116. In section 1 5H, - Amendment of section ISH.
(a) after clause (ii), the following clauses shall be inserted, namely:- "(iii) make a public offer by sending letter of offer to the sharehnlders of the colicerned company; or
(iv) make payment of consideration to the shareholders who sold their shares pursuant to letter of offer,";
(b) for the words' "five lakh rupees", the words "twenty-five crore rupees or three times the amount of profits made out of such failure, whichever is higher" shall be substituted.
117. After section 15H of the principal Act, the following sections shall be inserted, Insertion o f new sections 15HA and "Penalty for 15HA. If any person indulges in fraudulent and unfair I s m .
fraudulent and trade practices relating to securities, he shall be liable to a unfair trade practices. , penalty not exceeding twenty-five crore rupees or three times the amount of profits made out of such practices, whichever is higher.
Penalty for 15HB. Whoever fails to comply with any provision of contravention this Act, the rules or the regulations made or directions issued where no separate penalty has been by the Board thereunder for which no separate penalty has orovided. been provided, shall be liable to a penglty which may extend to one crore rbpees.".
18. In section 15-1 of the principal Act, in sub-section ( I ) , for the word, figures Amendment of and letter "and 1 5H", the figures, letters and word " 1 5H, 15HA and 15HB" shall be l5-1.
substituted.
119. After section 1 SJ of the principal Act, the following section shgl be inserted, Insertion of a ' namely :- new section 1 5JA.
"Crediting sum 15JA. All sums realised by way of penalties under this' ~ealised by way of Act shall be credited to the Consolidated Fund of India.".
penalties to Consolidated Fund o f India.
20. For sections 15L and 15Mof the principal Act, the following sections shall be Substitution of substituted, namely j new section for sections 15L "ESlablishrnent 15L. A Securities Appellate Tribunal shall consist of a and 15M.
of Securities Presidiqg Officer and two other members, to be appointed, by Appellate Tribunal. notification, by the Central Government :
Provided that the Securities Appellate Tribunal, consisting of one person only, established before the commencement of the Securities and Exchange Board of India (Amendment) Ordinance, 2002, shall continue to exercise the jurisdiction, powers and authority conferred on it by or under this Act or any other law for the time being in force till two . other Members are appointed under this section.
10 THE GAZE'ITE OF INDIA EXTRAORDINARY PART II- Qualification 15M. (1) A person shall not be qualified for appointment as t he for appointment Presiding Officer of a ~ecuriiies Appellate Tribunal unless he is a sitting or as Presiding retired Jlidge of the Supreme Court or a sitting or retired Chief Justice of a Officer or High Court : . ' Member o f Securities Provided that the Presiding Officer of the Securities Appellate Tribunal Appellate shall be appointed by the Central Government Jn consultation with the Tribunal. Chief Justice of ~nd ia or hisaominee.
(2) A person shall not be qualified for appointment as Member or" a Securities Appellate Tribunal unless he is a person of ability, integrity - and standing who has shown capacity in dealing with problems relating to securities market and has qualification and experience of corporate law, securities laws, finance, economics or accountancy:
Provided that a member of the Board or any person holding a post at senior management level equivalent to Executive Director in the Board shall not be appointed as Presiding Officer or Member of a Securities Appellate Tribunal during his service or tenure as such with the Board or within two years from the date on which he ceases to hold office as such in the Board.".
Substitution o f . 21. For section 15N ofthe principal Act, the following section shall be substituted, new section for namely:- section 1SN. - "Tenure of 15N. The Presiding Officer and every other Member of a Securities Appellate o f f ~ c e of Tribunal shall hold office for a term of five years from the date on which he enters Presiding Offtcer and upon his office and shall be eligible for re-appointment :
other Members of Securities Provided that no person shall hold office as the Presiding Officer of the ' Appellate Securities Appellate Tribunal after he has attained the age of sixty-eight years:
~rovided'further that no person shall hold office as a Member of the Securities Appellate Tribunal after he has attained the age of sixty-two years.".
Amendment 22. In section 15-0 of the principal Act,-- section 15-0.
(a) for the words "Presiding Officer of a Securities ~'ppellate Tribunal", the words "Presiding Officer and other Members of a Securities Appellate Tribunal" shall be substituted;
(b) for the words "said Presiding Officers", the words "Presiding Officer and other Members of a Securities Appellate Tribunal" shall be substituted.
Amendment , 23. In section I5P of the principal Act, for the words "office of the Presiding section ISP. Officer", the words "the office of the Presiding Officer or any other.Member" shall be substituted.
Amendment 24. In section 15Q of the principal Act, - section ISQ.
(a) in sub-section (I) ,-
(i) for the words "Presiding Officer of a Securities Appellate Tribunal", the words "the Presiding Officer or any other Member" shall be substituted;
(ii) in the proviso, for the words "the said' Presiding Officer", the words "the Presiding Officer or any other Member" shall be substituted;
(b) in sub-section (2), for the words "Presiding Officer" at both the places where they occur, the words "Presiding Officer or any other Member" shall be substituted;
SEC. I ] ' THE GAZETTE OF MDIA EXTRAORDMARY 11
(c) In sub-section (3), for the words "aforesaid pre;iding Officer", the Words "the Presiding Officer or any other Member" shall be substituted.
25. In section 15R of the principal Act, for the words "Presiding Officer", the Amendment of words "Presiding Officer or a Member" shall be substituted. section ~ S R .
26. For section 15X of the principal Act, the following section shall be substituted, Substitution of namely:- new section for section "Presiding Officer, 15X. The Presiding Officer, Members and other officers I s x .
Membersandskflof and employees of a Securities Appeilate Tribunal shall be Securities deemed to be public servants within the meaning of section Tribunals to be 45 of 1860. public se,vants. 2 1 of the Indian Penal Code.".
I
27. For section 15Z of the principal Act, the following section shall be substituted, Substitution namely:- of new section for "Appeal to 15Z. Any person aggrieved by any decision or order of section 152.
supreme Court. the Securities Appellate Tribunal may file an appeal to the Supreme Court within sixty days h m the date of communication i of the decision or order of the Securities Appellate Tribunal to him on any question of law arising out of such order:
Provided that the Supreme Court may, if it is satisfied that the applicant was prevented by sufficient cause from filing the appeal within the said period, allow it to be fiied within a further period not exceeding sixty days.".
28. In section 24 of the principal Act, - Amendment of section 24.
(a) in sub-section ( I ) , for the words "one year, or with fine, or with both" the words "ten years, or with fine, which may extend to twenty-five crore rupees or with both" shall be substituted;
(6) in sub-section (2), for the words "three years or with fine which shall not be less than two thousand rupees but which may extend to'ten thousand rupees or with both", the words "ten years or with fine;which may extend to twenty-five crore rupees or with both" shall be substituted.
29, After section 24 of the principal Act, the following sections shall be inserted, Insertion of namely :- new sections 24A and 24B.
I . "Composition of 24A. Notwithstanding anything contained in the Code 2 of 1974. certain of Criminal Procedure, 1973, any offence punishable under this Act, not being an offence punishable with imprisonment only, or with imprisonment and also with fine, may either before or after the institution of any proceeding, be compounded by a Securities Appellate Tribunal or a court before which such proceedings are pending.
Power to grant 24R. ( I ) The Ceptral Government may, on Immunity. - recommendation by the Board, if the Central Government is satisfied, that any person, who is alleged to have violated any of the provisions of this Act or the rules or the regulations made thereunder, has made a full and true disclosure in respect of the alleged violation, grant to such person, subject to such ' conditions as it may think fit to impose, immunity from prosecution for any offence under this Act, or the rules or the regulations made thereunder or also from the imposition of any penalty under this Act with respect to the alleged violation :
12 THE GKLETTE OF INDIA ExTR~ORDI~~ARY [ P ~ T 1 1 - 4 3 ~ ~ . 11 hovided that no such immunity shall be granted by the Central Governnieht in cases where the proceedings for the , prowution for any such offence have' been instituted before the date of receipt of qiplitxtion for grant of such imahunity: .
Provided further that recommendation Bf the Board under this sub-section shall not be binding on the Central Government.
(2) An immunity granted to a person under sub-section (I) may, at any time, be withdrawn by the Cmtral Government, if it is satisfied-that such person had, in the course of the proceedings, not complied with the condition on which the immunity was granted or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the contravention and shall also become liable to the imposition of any penalty under this Ad to which such person would have been liable, had not such immunity been granted.".
Amendment 30. In section 26 of the principal Act, in sub-section (2), for the words
26. "a Metropolitan Magistrate or a Judicial Magistrate of the first class", the words > .- "a Court of Session" shall be substituted. 1 Y \ Amendment 31. In section 29 of the principal Act, in sub-section (2), - of section 29.
(i) in clause (db), for the words "Presiding Officers", the words "Presiding Officers, Members" shall be substituted;
(ii) in clause (dc), for the words "Presiding Officers", the words "Presiding Officers, Members" shall be substituted.
A.P.J. ABDUL KALAM, President.
SUBHASH C. JAIN , Secy. to the Govt. oflndia.
PRINTED BY THE MANAGER, COVEF3WENT OF INDIA PRESS, MWrO ROAD, NEW DELHI AND PUBLISHED BY n-1E CONTROLLER OF PUBLICATIONS, D E W 2002.