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

Arjun notes that the SEBI Act, 1992 was preceded by an Ordinance. Which statement about the Securities and Exchange Board of India Ordinance, 1992 is correct under the official text?

The Ordinance is repealed by Section 35(1), but Section 35(2) saves what was done under it. Anything done or any action taken is deemed done or taken under the corresponding provisions of the SEBI Act, so continuity is preserved.

  1. AThe Ordinance continues to operate alongside the Act
  2. BThe Ordinance is repealed, and actions taken under it are deemed taken under the corresponding provisions of the ActCorrect
  3. CThe Ordinance is repealed, and all actions taken under it become void
  4. DThe Ordinance is repealed only for matters decided after the Board is established

Explanation

Section 35(1) repeals the Ordinance. Section 35(2) saves anything done or action taken under it by deeming it done under the corresponding provisions of the Act. Hence actions are not void and the Ordinance does not continue in parallel.

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