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CS Executive · Capital Market and Securities Laws · Listing Obligations and Disclosure Requirements

Which statement about regulations made by SEBI under the Securities Contracts (Regulation) Act, 1956 is correct as per Section 31?

Every regulation SEBI makes under the SCRA must be laid before each House of Parliament as soon as may be after it is made. Section 31 allows the regulations to be made by Official Gazette notification, with Parliament able to modify or annul them.

  1. AEvery regulation must be laid before each House of Parliament after it is madeCorrect
  2. BRegulations take effect only after the Central Government rewrites them as rules
  3. CRegulations need not be laid before Parliament
  4. DRegulations may be made only by notification in a newspaper and not the Official Gazette

Explanation

Section 31(1) lets SEBI make regulations by notification in the Official Gazette, and Section 31(3) requires every regulation to be laid before each House of Parliament as soon as may be after it is made. The other options contradict this.

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