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

On the date the statutory SEBI was established, the existing Board owned a Mumbai office building and held Rs 40 lakh due from a vendor. What happens to these under the SEBI Act, 1992?

The building vests in the statutory Board and the Rs 40 lakh is deemed due to the Board. The Act vests all movable and immovable properties of the existing Board in the new Board and treats sums due to the old Board as due to the new one.

  1. AThe building vests in the Board, and the sum is deemed due to the BoardCorrect
  2. BThe building vests in the Central Government, and the sum is due to the Board
  3. CThe building must be sold, and the sum is written off
  4. DBoth remain with the existing Board until it is wound up

Explanation

Section 10(1)(b) vests all movable and immovable properties and assets of the existing Board in the Board. Section 10(1)(e) deems sums due to the existing Board immediately before that date to be due to the Board. The Central Government option is wrong because vesting is in the Board.

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