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

Ramesh holds a decree-related claim in a suit pending against the 'existing Securities and Exchange Board' when the statutory SEBI is established. Which statement correctly describes the position under the SEBI Act, 1992?

The suit may be continued by or against the statutory Board. The SEBI Act provides that legal proceedings instituted, or capable of being instituted, by or against the existing Securities and Exchange Board before the establishment date may continue against SEBI, so there is no abatement or need to refile.

  1. AThe suit abates automatically because the original defendant has ceased to exist
  2. BThe suit may be continued by or against the BoardCorrect
  3. CThe suit can continue only if the Central Government gives written consent
  4. DThe suit must be withdrawn and refiled in the name of the Board within six months

Explanation

Section 10(1)(f) states that suits and other legal proceedings instituted, or which could have been instituted, by or against the existing Board immediately before that date may be continued or may be instituted by or against the Board. Abatement, government consent or refiling is not required.

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