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

Before the Board was established, Mohan acted as a sub-broker and no registration certificate was needed then. As per the first proviso to Section 12(1), until when may he continue to act without a certificate?

He may continue for three months from the Board's establishment, or, if he applied for registration within that time, until his application is disposed of. The first proviso to Section 12(1) gives no indefinite exemption for pre-existing intermediaries.

  1. AFor three months from the Board's establishment, or if he applied within that period, until his application is disposed ofCorrect
  2. BIndefinitely, as his business pre-dated the Board
  3. CFor one year from the Board's establishment in all cases
  4. DOnly until the stock exchange next reviews his membership

Explanation

The first proviso lets such a person continue for three months from the establishment of the Board, or, if he has applied for registration within those three months, until the application is disposed of. It gives no indefinite exemption or fixed one-year period.

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