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

SEBI notifies a regulation under section 31 of the SCRA. What is the requirement regarding Parliament under section 31(3)?

Every regulation made by SEBI under the Act must be laid before each House of Parliament for a total period of thirty days. If both Houses agree to modify or annul it, it takes effect only in modified form or not at all, without affecting earlier actions.

  1. AIt need only be published in the Gazette with no further step
  2. BIt must be approved by a resolution of the Lok Sabha before taking effect
  3. CIt 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. DIt must be laid before the Rajya Sabha only, for sixty days

Explanation

Section 31(3) requires every regulation to be laid before each House while in session for a total of thirty days. 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. Prior acts under it remain valid.

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