Which is not the power of Securities and Exchange Board of India(SEBI) as per the Finance Bill 2019 presented during the Union Budget 2019?

  • 1Removal of Directors & Supersession of board
  • 2Alteration, Destruction etc. of records and failure to protect electronic database
  • 3Checks and Balances on SEBI's Expenses
  • 4Clarification on Electronic Communication & penalty on broker
Answer:- 1
Explanation:-

The Finance Bill 2019, one of the documents of the Union Budget 2019-20, gave certain powers to the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). Checks and Balances on SEBI's Expenses: Finance Bill amends section 14 of the SEBI Act and constitutes a Reserve Fund. SEBI General Fund can be utilized for capital expenditure as per annual capital expenditure plan approved by the SEBI board and the Central Government. 25% of the annual surplus of the General Fund is required to be credited to this Reserve Fund and SEBI has to transfer the rest 75% of its annual surplus from the General Fund every year to Consolidated Fund of India (CFI). Clarification on Electronic Communication & penalty on broker: SEBI under section 15C of SEBI Act, can ask a listed company or any person who is registered as an intermediary, to redress the grievances of investors. It can now impose penalties of up to Rs 1 crore on brokers for certain violations.

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