Section 2 in The Securities and Exchange Board of India Act, 1992

Title: Definitions

Description: (1) In this Act, unless the context otherwise requires,--- (a) "Board" means the Securities and Exchange Board of India established under section 3; (b) "Chairman" means the Chairman of the Board; 1[(ba) collective investment scheme means any scheme or arrangement which satisfies the conditions specified in section 11AA;] (c) "existing Securities and Exchange Board" means the Securities and Exchange Board of India constituted under the Resolution of the Government of India in the Department of Economic Affairs No. 1(44)SE/86, dated the 12th day of April, 1988; (d) "Fund" means the Fund constituted under section 14; 2[(da) "Insurance Regulatory and Development Authority" means the Insurance Regulatory and Development Authority of India established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999); (db) "Judicial Member" means a Member of the Securities Appellate Tribunal appointed under sub-section (1) of section 15MA and includes the Presiding Officer.] (e) member means a member of the Board and includes the Chairman; (f) notification means a notification published in the Official Gazette; 2[(fa) "Pension Fund Regulatory and Development Authority" means the Pension Fund Regulatory and Development Authority established under sub-section (1) of section 3 of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013);] (g) "prescribed" means prescribed by rules made under this Act; (h) "regulations" means the regulations made by the Board under this Act; 3[(ha) Reserve Bank means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934);] (i) "securities" has the meaning assigned to it in section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956). 2[(j) "Technical Member" means a Technical Member appointed under sub-section (1) of section 15 MB.] 4[(2) Words and expressions used and not defined in this Act but defined in 5[the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the Depositories Act, 1996 (22 of 1996)] shall have the meanings respectively assigned to them in that Act.] 1. Ins. by Act 31 of 1999, s. 11 (w.e.f. 22-2-2000). 2. Ins. by Act 7 of 2017, s. 146 (w.e.f. 26-4-2017). 3. Ins. by Act 59 of 2002, s. 2 (w.e.f. 29-10-2002). 4. Subs. by Act 9 of 1995, s. 2, for sub-section (2) (w.e.f. 25-1-1995). 5. Subs. by Act 22 of 1996, s. 30 and the Schedule, for the Securities Contracts (Regulation) Act, 1956 (42 of 1956) (w.e.f. 20-9-1995).

Title: Establishment and incorporation of Board

Description: (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.

Title: Management of the Board

Description: (1) The Board shall consist of the following members, namely:-- (a) a Chairman; (b) two members from amongst the officials of the 1[Ministry] of the Central Government dealing with Finance 2[and administration of the Companies Act, 1956 (1 of 1956)]; (c) one member from amongst the officials of 3[the Reserve Bank]; 4[(d) five other members of whom at least three shall be the whole-time members,]\to be appointed by the Central Government. (2) The general superintendence, direction and management of the affairs of the Board shall vest in a Board of members, which may exercise all powers and do all acts and things which may be exercised or done by the Board. (3) Save as otherwise determined by regulations, the Chairmen shall also have powers of general superintendence and direction of the affairs of the Board and may also exercise all powers and do all acts and things which may be exercised or done by that Board. (4) The Chairman and members referred to in clauses (a) and (d) of sub-section (1) shall be appointed by the Central Government and the members referred to in clauses (b) and (c) of that sub-section shall be nominated by the Central Government and the 5[Reserve Bank] respectively. (5) The Chairman and the other members referred to in clauses (a) and (d) of sub-section (1) shall be persons of ability, integrity and standing who have shown capacity in dealing with problems relating to securities market or have special knowledge or experience of law, finance, economics, accountancy, administration or in any other discipline which, in the opinion of the Central Government, shall be useful to the Board. 1. Subs. by Act 59 of 2002, s. 3, for "Ministries" (w.e.f. 29-10-2002). 2. Subs. by s. 3, ibid., for "and Law" (w.e.f. 29-10-2002). 3. Subs. by s. 3, ibid., for "the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934)" (w.e.f. 29-10-2002). 4. Subs. by s. 3, ibid., for clause (d) (w.e.f. 29-10-2002). 5. Subs. by s. 3, ibid., for "Reserve Bank of India" (w.e.f. 29-10-2002).

Title: Term of office and conditions of service of Chairman and members of the Board

Description: (1) The term of office and other conditions of service of the Chairman and the members referred to in clause (d) of sub-section (1) of section 4 shall be such as may be prescribed. (2) Notwithstanding anything contained in sub-section (1), the Central Government shall have the right to terminate the services of the Chairman or a member appointed under clause (d) of sub-section (1) of section 4, at any time before the expiry of the period prescribed under sub-section (1), by giving him notice of not less than three months in writing or three months salary and allowances in lieu thereof, and the Chairman or a member, as the case may be, shall also have the right to relinquish his office, at any time before the expiry of the period prescribed under sub-section (1), by giving to the Central Government notice of not less than three months in writing.

Title: Removal of member from office

Description: 1*** The Central Government shall remove a member from office if he (a) is, or at any time has been, adjudicated as insolvent; (b) is of unsound mind and stands so declared by a competent court; (c) has been convicted of an offence which, in the opinion of the Central Government, involves a moral turpitude; 2***** (e) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest: Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter. 1. The brackets and figure "(1)" omitted by Act 9 of 1995, s. 3 (w.e.f. 25-1-1995). 2. Clause (d) omitted by Act 9 of 1995, s. 3 (w.e.f. 25-1-1995).