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CMA Final · Corporate and Economic Laws · SEBI Laws and Regulations

Regarding regulations made by SEBI under Section 31 of the Securities Contracts (Regulation) Act, 1956, which statement is correct?

Every regulation SEBI makes under the SCRA must be laid before each House of Parliament for a total of thirty days. If both Houses agree to modify it or that it should not be made, it operates only as modified or not at all, without affecting earlier actions.

  1. AThey take effect only after both Houses of Parliament approve them by resolution
  2. BThey are not required to be placed before Parliament
  3. CThey must be laid before each House of Parliament for a total period of thirty days, and may be modified or annulled by both HousesCorrect
  4. DThey can be modified only by the Central Government by notification

Explanation

Section 31(3) requires every regulation to be laid before each House for thirty days in total, in one or more sessions. If both Houses agree to a modification or that it should not be made, it has effect only in modified form or not at all, without prejudice to past actions. Prior approval is not required.

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