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CS Executive · Capital Market and Securities Laws · Securities and Exchange Board of India

Under Section 4 of the SEBI Act, 1992, which statement about the powers of the Chairman is correct?

The Chairman also holds powers of general superintendence and direction of the Board's affairs and may exercise the Board's powers, unless regulations provide otherwise. This is in addition to the Board of members, in which general superintendence and management of affairs vest.

  1. AThe Chairman has no powers beyond those of an ordinary member
  2. BUnless regulations provide otherwise, the Chairman also has powers of general superintendence and direction of the Board's affairs and may exercise the Board's powersCorrect
  3. CThe Chairman alone holds general superintendence and the Board of members has no such role
  4. DThe Chairman's powers of superintendence require approval of the Reserve Bank member

Explanation

Section 4(2) vests general superintendence, direction and management in the Board of members, and Section 4(3) adds that, save as determined by regulations, the Chairman also has powers of general superintendence and direction and may exercise the Board's powers. So the Chairman's powers are additional, not exclusive.

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