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CS Professional · Drafting, Pleadings and Appearances · Adjudications and Appeals under SEBI Laws

Arvind Textiles Ltd is penalised by SEBI. It also faces action under another statute for the same conduct and argues that the SEBI Act displaces the other law. Applying Section 32 of the SEBI Act, 1992, which is correct?

Under Section 32, the SEBI Act is in addition to and not in derogation of any other law in force. It does not displace or bar the other statute, so the company's argument that the SEBI Act excludes other proceedings is incorrect.

  1. AThe SEBI Act prevails and bars proceedings under any other law on the same facts
  2. BOther laws apply only if SEBI gives written permission
  3. CThe SEBI Act's provisions are in addition to, and not in derogation of, any other law in force, so the argument failsCorrect
  4. DThe other law applies only after SAT has decided the appeal

Explanation

Section 32 provides that the SEBI Act is in addition to, and not in derogation of, any other law for the time being in force. It does not bar other statutes, require SEBI permission, or make them wait for SAT. The company's displacement argument therefore fails on this section alone.

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