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CMA Final · Corporate and Economic Laws · SEBI Laws and Regulations

An entity argues that because SEBI Act, 1992 governs a certain conduct, no other statute can apply to it. Which provision answers this argument?

Section 32 of the SEBI Act answers it. The Act's provisions are in addition to, and not in derogation of, any other law for the time being in force, so other statutes continue to apply to the conduct alongside the SEBI Act.

  1. ASection 32 of the SEBI Act: its provisions are in addition to, and not in derogation of, any other law in forceCorrect
  2. BSection 26 of the SCRA: only SEBI may initiate action under any law
  3. CSection 31 of the SCRA: SEBI regulations override every other enactment
  4. DSection 26 of the Depositories Act: bye-laws displace other laws

Explanation

Section 32 of the SEBI Act states that its provisions are in addition to, and not in derogation of, any other law for the time being in force. Therefore other laws can still apply. The other sections cited do not contain such an overriding rule.

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