Skip to content

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

On the establishment of the statutory SEBI, a sum of money was due to the existing Securities and Exchange Board from a debtor, and the old Board also owned a building. Which pair of statements correctly reflects the SEBI Act, 1992?

The money due to the old Board is deemed to be due to the statutory SEBI, and the building, being immovable property of the existing Board, vests in SEBI. The Act transfers both assets and receivables to the new Board without any sale or write-off.

  1. AThe sum is deemed due to the Board, and the building vests in the BoardCorrect
  2. BThe sum is written off, and the building vests in the Central Government
  3. CThe sum is deemed due to the Board, but the building must be sold within six months
  4. DThe sum is due to the Central Government, and the building vests in the Board

Explanation

Section 10(1)(e) deems all sums due to the existing Board immediately before the date to be due to the Board, and section 10(1)(b) vests all movable and immovable properties and assets of the existing Board in the Board. No write-off, government vesting or compulsory sale is 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