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

Kiran Corp is proceeded against under the SEBI Act. Its counsel argues that because the SEBI Act provides its own adjudication machinery, no other law can apply to the same conduct. Which response reflects the Act's text?

The argument is incorrect. Section 32 of the SEBI Act provides that its provisions are in addition to, and not in derogation of, any other law for the time being in force, so having its own adjudication machinery does not exclude other applicable laws.

  1. ACorrect, because the SEBI Act overrides every other law on securities
  2. BIncorrect, because the SEBI Act's provisions are in addition to, and not in derogation of, any other law in forceCorrect
  3. CCorrect, but only for conduct relating to depositories
  4. DIncorrect, because the SEBI Act applies only if the Securities Contracts (Regulation) Act is silent

Explanation

Section 32 states that the SEBI Act's provisions are in addition to, and not in derogation of, any other law for the time being in force. The Act therefore does not exclude other laws, so counsel's argument fails. No override of other laws is provided.

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