Introduction -
In the year 1988, the Securities and Exchange Board of India (SEBI) was established to promote healthy growth of the securities market and Investors Protection. The Securities and Exchange Board of India bill passed by both houses of the Parliament and received the assent of the President on 4th April 1992. It came on the Statute book to be called the Securities and Exchange Board of India Act 1992
Establishment of SEBI (The Securities and Exchange Board of India) [Section 3]-
To achieve the object and purpose contemplated in the Securities and Exchange Board of act 1992 the central government is empowered to establish securities and Exchange Board of India by notification in the official gazette.
The Securities and Exchange Board of India shall be regarded as a body of Corporate, having perpetual succession and a common seal with power to acquire, Hold and dispose of property both movable and immovable, and to contract by the said name and sue or to be sued.
The head office of exchange Board of India is at Bombay. According to Section 3(4) of the said Act, the Board may establish offices at other places in India.
Section 3 of the SEBI Act run as follows -
(1) With effect from such date as the Central Government may, by notification, appoint, there shall be established, for the purposes of this Act, a Board by the name of the Securities and Exchange Board of India.
(2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.
(3) The head office of the Board shall be at Bombay.
(4) The Board may establish offices at other places in India.
This law is called Natural Law as its principles are supposed to laid down by god for the guidance of man. It is called Rational Thought because it is based on vidmate reason.
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