CS Executive · Capital Market and Securities Laws · Secondary Market in India
Which of the following legal proceedings is covered by the bar in the SCRA provision protecting action taken in good faith by a recognised stock exchange's governing body?
The bar covers any suit, prosecution or other legal proceeding whatsoever in any court. It is not limited to civil or criminal cases, provided the act was done in good faith in pursuance of the SCRA or its rules or bye-laws.
- AOnly a civil suit for damages
- BOnly a criminal prosecution
- CAny suit, prosecution or other legal proceeding in any courtCorrect
- DOnly proceedings before SEBI
Explanation
The provision states that no suit, prosecution or other legal proceeding whatsoever shall lie in any court. It is therefore not limited to civil or criminal matters alone. It speaks of courts, so the SEBI-only option is wrong.
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