Skip to content

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

Meera was an employee of the existing Securities and Exchange Board on the day the statutory Board was established. She does not wish to join the new Board. Under the SEBI Act, 1992, what is the position?

Meera continues as an employee of SEBI on the same tenure and terms of service she had before, unless she opts not to be its employee within six months from the date of establishment. The Act protects existing terms but gives this six-month opt-out window.

  1. AShe is bound to continue permanently on revised terms fixed by the Board
  2. BShe continues on the same tenure and terms unless she opts out within six months from that dateCorrect
  3. CShe ceases to be an employee immediately unless the Board re-appoints her
  4. DShe may opt out at any time within two years from that date

Explanation

Section 10(1)(g) says every employee holds office in the Board by the same tenure and on the same terms (remuneration, leave, provident fund, retirement and terminal benefits), and continues as an employee unless she opts out within six months from that date. Immediate cessation and a two-year window are not provided.

Did you get it right without looking?

One question tells you little. A timed set on Securities and Exchange Board of India shows your real accuracy, how long you take and where you lose marks.

Practise Securities and Exchange Board of IndiaFree diagnostic mock

More Securities and Exchange Board of India questions