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

Under Section 26 of the Securities Contracts (Regulation) Act, 1956 (as currently in force), which of the following is correct about cognizance of offences by courts?

Under Section 26(1) of the SCRA, no court takes cognizance of an offence under the Act, rules, regulations or bye-laws except on a complaint by the Central Government, a State Government, SEBI, a recognised stock exchange or any person.

  1. AOnly SEBI may file a complaint for any offence under the Act
  2. BA court may take cognizance only on a complaint by the Central Government or a State Government
  3. CA court may take cognizance on a complaint by the Central Government, a State Government, SEBI, a recognised stock exchange or any personCorrect
  4. DA court may take cognizance only on a complaint by a recognised stock exchange

Explanation

Section 26(1) bars cognizance except on a complaint made by the Central Government, State Government, SEBI, a recognised stock exchange or by any person. The other options wrongly restrict the list of complainants.

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