CMA Final · Corporate and Economic Laws · SEBI Laws and Regulations
Under the Securities and Exchange Board of India Act, 1992, what is the effect of the provision on the application of other laws?
The SEBI Act, 1992 operates in addition to, and not in derogation of, any other law for the time being in force. It does not replace other laws, so both can apply together to the same matter.
- AThe SEBI Act overrides every other law and no other law can apply to securities matters
- BThe SEBI Act applies in addition to, and not in derogation of, any other law for the time being in forceCorrect
- COther laws apply only if SEBI issues a notification permitting them
- DThe SEBI Act applies only where no other law covers the matter
Explanation
Section 32 of the SEBI Act says its provisions are in addition to, and not in derogation of, any other law in force. It therefore does not displace other laws. The option claiming an overriding effect reverses this rule.
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