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

Under the Securities Contracts (Regulation) Act, 1956, as it now stands, 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 of an offence under the SCRA only on a complaint made by the Central Government, a State Government, SEBI, a recognised stock exchange or any person. The complaint route is therefore not limited to SEBI or the governments.

  1. AOnly the Central Government or SEBI
  2. BOnly SEBI or a recognised stock exchange
  3. COnly the Central Government, a State Government or SEBI, and not any private person
  4. DThe 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 restricted options wrongly exclude some of these complainants.

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