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CS Executive · Capital Market and Securities Laws · Securities Contracts (Regulation) Act, 1956

SEBI approves new bye-laws of Capital Bourse, a recognised stock exchange, and is satisfied that in the public interest they must take effect immediately. Which statement correctly reflects Section 9(4)?

SEBI may dispense with previous publication by an order in writing specifying its reasons, when satisfied that the interest of trade or public interest requires immediate bye-laws. The approved bye-laws are still published in the Gazette and take effect from the date of publication in the Gazette of India.

  1. ASEBI may by written order giving reasons dispense with the condition of previous publicationCorrect
  2. BSEBI may dispense with it orally without recording reasons
  3. CThe condition of previous publication can never be dispensed with
  4. DOnly the Central Government can dispense with previous publication

Explanation

The proviso to Section 9(4) allows SEBI, if satisfied that in the interest of trade or public interest bye-laws should be made immediately, to dispense with previous publication by an order in writing specifying reasons. Oral dispensation is not enough, and the power rests with SEBI, not the Central Government.

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