Section 28A in The Securities and Exchange Board of India Act, 1992
Title: Recovery of amounts
1[28A. Recovery of amounts.--(1) If a person fails to pay the penalty imposed 2[under this Act] or fails to comply with any direction of the Board for refund of monies or fails to comply with a direction of disgorgement order issued under section 11B or fails to pay any fees due to the Board, the Recovery Officer may draw up under his signature a statement in the specified form specifying the amount due from the person (such statement being hereafter in this Chapter referred to as certificate) and shall proceed to recover from such person the amount specified in the certificate by one or more of the following modes, namely:--
(a) attachment and sale of the person‘s movable property;
(b) attachment of the person‘s bank accounts;
(c) attachment and sale of the person‘s immovable property;
(d) arrest of the person and his detention in prison;
(e) appointing a receiver for the management of the person's movable and immovable properties,
and for this purpose, the provisions of sections 220 to 227, 228A, 229, 232, the Second and Third Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, in so far as may be, apply with necessary modifications as if the said provisions and the rules made thereunder were the provisions of this Act and referred to the amount due under this Act instead of to income-tax under the Income-tax Act, 1961.
Explanation 1.-- For the purposes of this sub-section, the person's movable or immovable property or monies held in bank accounts shall include any property or monies held in bank accounts which has been transferred directly or indirectly on or after the date when the amount specified in certificate had become due, by the person to his spouse or minor child or son's wife or son's minor child, otherwise than for adequate consideration, and which is held by, or stands in the name of, any of the persons aforesaid; and so far as the movable or immovable property or monies held in bank accounts so transferred to his minor child or his son's minor child is concerned, it shall, even after the date of attainment of majority by such minor child or son's minor child, as the case may be, continue to be included in the person's movable or immovable property or monies held in bank accounts for recovering any amount due from the person under this Act.
Explanation 2.--Any reference under the provisions of the Second and Third Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 1962 to the assessee shall be construed as a reference to the person specified in the certificate.
Explanation 3.--Any reference to appeal in Chapter XVIID and the Second Schedule to the Income-tax Act, 1961 (43 of 1961), shall be construed as a reference to appeal before the Securities Appellate Tribunal under section 15T of this Act.
3[Explanation 4. --The interest referred to in section 220 of the Income-tax Act, 1961 shall commence from the date the amount became payable by the person.]
(2) The Recovery Officer shall be empowered to seek the assistance of the local district administration while exercising the powers under sub-section (1).
(3) Notwithstanding anything contained in any other law for the time being in force, the recovery of amounts by a Recovery Officer under sub-section (1), pursuant to non-compliance with any direction issued by the Board under section 11B, shall have precedence over any other claim against such person.
(4) For the purposes of sub-sections (1), (2) and (3), the expression "Recovery Officer‘‘ means any officer of the Board who may be authorised, by general or special order in writing, to exercise the powers of a Recovery Officer.]
1. Ins. by Act 27 of 2014, s. 21 (w.e.f. 18-7-2013).
2. Subs. by Act 13 of 2018, s. 189, for "by the adjudicating officer" (w.e.f. 8-3-2019).
3. The Explanation ins. by Act 21 of 2019, s. 42 and the Second Schedule (w.e.f. 21-2-2019).
Title: Continuance of proceedings
1[28B. Continuance of proceedings.—(1) Where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay, if he had not died, in the like manner and to the same extent as the deceased:
Provided that, in case of any penalty payable under this Act, a legal representative shall be liable only in case the penalty has been imposed before the death of the deceased person.
(2) For the purposes of sub-section (1),—
(a) any proceeding for disgorgement, refund or an action for recovery before the Recovery Officer under this Act, except a proceeding for levy of penalty, initiated against the deceased before his death, shall be deemed to have been initiated against the legal representative, and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased and all the provisions of this Act shall apply accordingly;
(b) any proceeding for disgorgement, refund or an action for recovery before the Recovery Officer under this Act, except a proceeding for levy of penalty, which could have been initiated against the deceased if he had survived, may be initiated against the legal representative and all the provisions of this Act shall apply accordingly.
(3) Every legal representative shall be personally liable for any sum payable by him in his capacity as legal representative if, while his liability for such sum remains undischarged, he creates a charge on or disposes of or parts with any assets of the estate of the deceased, which are in, or may come into, his possession, but such liability shall be limited to the value of the asset so charged, disposed of or parted with.
(4) The liability of a legal representative under this section shall be limited to the extent to which the estate of the deceased is capable of meeting the liability.
Explanation.—For the purposes of this section “legal representative” means a person who in law represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased and where a party sues or is sued in a representative character, the person on whom the estate devolves on the death of the party so suing or sued.]
1 Ins. by Act 13 of 2018, s. 190 (w.e.f. 8-3-2019).
Title: Power to make rules
(1) The Central Government may, by notification, make rules for carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:
(a) the term of office and other conditions of service of the Chairman and the members under sub-section (1) of section 5;
(b) the additional functions that may be performed by the Board under section 11;
(d) the manner in which the accounts of the Board shall be maintained under section 15;
2[(da) the manner of inquiry under sub-section (1) of section 15-I;
(db) the salaries and allowances and other terms and conditions of service of the 3[ Presiding Officers, Members] and other officers and employees of the Securities Appellate Tribunal under section 15-O and sub-section (3) of section 15S;
(dc) the procedure for the investigation of misbehaviour or incapacity of the 4Presiding Officers, or other Members] of the Securities Appellate Tribunal under sub-section (3) of section 15Q;
(dd) the form in which an appeal may be filed before the Securities Appellate Tribunal under section 15T and the fees payable in respect of such appeal];
(e) the form and the manner in which returns and report to be made to the Central Government under section 18;
(f) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be, or may be, made by rules.
1. Clause (c) omitted by Act 9 of 1995, s. 16 (w.e.f. 25-1-1995).
2. Ins. by s. 16, ibid. (w.e.f. 25-1-1995).
3. Subs. by Act 59 of 2002, s. 31, for "Presiding Officers" (w.e.f. 29-10-2002).
4. Subs. by s. 31, ibid., for "Presiding Officers" (w.e.f. 29-10-2002).
Title: Power to make regulations
(1) The Board may, 1*** by notification, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:--
(a) the times and places of meetings of the Board and the procedure to be followed at such meetings under sub-section (1) of section 7 including quorum necessary for the transaction of business;
(b) the term and other conditions of service of officers and employees of the Board under sub-section (2) of section 9;
2[(c) the matters relating to issue of capital, transfer of securities and other matters incidental thereto and the manner in which such matters shall be disclosed by the companies under section 11A;
3[(ca) the utilisation of the amount credited under sub-section (5) of section 11;
(cb) the fulfilment of other conditions relating to collective investment scheme under sub-section (2A) of section 11AA;]
(d) the conditions subject to which certificate of registration is to be issued, the amount of fee to be paid for certificate of registration and the manner of suspension or cancellation of certificate of registration under section 12;]
4[(da) the terms determined by the Board for settlement of proceedings under sub-section (2) and the procedure for conducting of settlement proceedings under sub-section (3) of section 15JB;
(db) any other matter which is required to be, or may be, specified by regulations or in respect of which provision is to be made by regulations.]
1. The words "with the previous approval of the Central Government" omitted by Act 9 of 1995, s. 17 (w.e.f. 25-1-1995).
2. Subs. by Act 9 of 1995, s. 17, for clause (c) (w.e.f. 25-1-1995).
3. Ins. by Act 27 of 2014, s. 22 (w.e.f. 18-7-2013).
4. Ins. by s. 22, ibid. (w.e.f. 18-7-2013).
Title: Rules and regulations to be laid before Parliament
Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.