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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 given in the official text, on whose complaint may a court take cognizance of an offence punishable under the Act or its rules, regulations or bye-laws?

A court may take cognizance only on a complaint, and the complainant may be the Central Government, a State Government, SEBI, a recognised stock exchange or any person. Options limiting complaints to SEBI or the Centre are too narrow.

  1. AOnly on a complaint by SEBI
  2. BOnly on a complaint by the Central Government or SEBI
  3. COnly on a complaint by a recognised stock exchange or the Central Government
  4. DOn a complaint by the Central Government, a State Government, SEBI, a recognised stock exchange or any personCorrect

Explanation

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

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