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CS Executive · Capital Market and Securities Laws · Securities Market Intermediaries

Before SEBI was established, Mehta Registrars acted as a registrar to an issue without any registration, as none was then required. Under the first proviso to Section 12(1), until when could it continue its activity?

Mehta Registrars could continue for three months from the establishment of SEBI, or, if it applied for registration within that period, until its application was disposed of. This is the first proviso to Section 12(1); it gives no indefinite or one-year protection.

  1. AIndefinitely, as its business pre-dated SEBI
  2. BFor three months from the establishment of SEBI, or until disposal of its application if it applied for registration within that periodCorrect
  3. CFor one year from the establishment of SEBI in all cases
  4. DUntil the next annual general meeting of the issuer company

Explanation

The proviso permits such a person to continue for three months from SEBI's establishment, or, if an application for registration is made within those three months, until that application is disposed of. It does not give indefinite or one-year relief.

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