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CS Executive · Capital Market and Securities Laws · Securities and Exchange Board of India

An action was taken under the SEBI Ordinance, 1992 before the SEBI Act, 1992 was enacted. After the Ordinance was repealed, what is the legal position of that action under the Act?

The action is deemed to have been taken under the corresponding provisions of the Act. Section 35(2) saves what was done under the repealed Ordinance despite the repeal, so no re-issue, notification or confirmation by any tribunal is needed.

  1. AIt becomes void because the Ordinance stands repealed
  2. BIt remains valid only if the Central Government re-issues it by notification
  3. CIt is deemed to have been taken under the corresponding provisions of the ActCorrect
  4. DIt is valid only if confirmed by the Securities Appellate Tribunal

Explanation

Section 35(2) says that notwithstanding the repeal, anything done or any action taken under the Ordinance is deemed to have been done or taken under the corresponding provisions of the Act. So repeal does not nullify it, and no re-issue or confirmation is required.

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