(93)

R.N.I. No. KARBIL/2001/47147

POSTAL REGISTRATION

No. RNP/KA/BGS/2202/2014-16

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F PÉ¼ÀPÀAqÀ The Securities Laws (Amendment) Second Ordinance, 2013 (No. 9 of 2013) ¢£ÁAPÀ 16-09-2013 C£ÀÄß ¸ÁªÀðd¤PÀgÀ

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MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 16^th September, 2013

THE SECURITIES LAWS (AMENDMENT) SECOND ORDINANCE, 2013

NO. 9 OF 2013

Promulgated by the President in the Sixty-fourth Year of the Republic of India.

An Ordinance further to amend the Securities and Exchange Board of India Act, 1992, the Securities Contracts (Regulation)

Act, 1956 and the Depositories Act, 1996.

WHEREAS the Securities Laws (Amendment) Ordinance, 2013 further to amend the Securities and Exchange Board of

India Act, 1992, the Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996 was promulgated by the President on

the 18th July, 2013;

AND WHEREAS the Securities Laws (Amendment) Bill, 2013 with certain modifications was introduced in the House of the

People to replace the said Ordinance but has not yet been passed;

AND WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it

necessary for him to take immediate action to give continued effect to the provisions of the said Ordinance;

NOW, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is

pleased to promulgate the following Ordinance:—

CHAPTER I

PRELIMINARY

1. Short title and commencement.- (1) This Ordinance may be called the Securities Laws (Amendment) Second

Ordinance, 2013.

(2) Save as otherwise provided in this Ordinance, it shall be deemed to have come into force on the 18th day of July, 2013.

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Volume 149

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Bangalore, Thursday, February 6, 2014 (Magha 17, Shaka Varsha 1935)

¸ÀAaPÉ 6

Issue 6

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CHAPTER II

AMENDMENTS TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

2. Amendment of section 11.- In section 11 of the Securities and Exchange Board of India Act, 1992 15 of 1992 (hereinafter

in this Chapter referred to as the principal Act),—

(i) in sub-section (2),—

(a) for clause (ia), the following clause shall be substituted, namely:—

"(ia) calling for information and records from any person including any bank or any other authority or board or

corporation established or constituted by or under any Central or State Act which, in the opinion of the Board, shall be

relevant to any investigation or inquiry by the Board in respect of any transaction in securities;”;

(b) after clause (ia), the following clause shall be inserted and shall be deemed to have been inserted with effect

from the 6th day of March, 1998, namely:—

“(ib) calling for information from, or furnishing information to, other authorities, whether in India or outside India,

having functions similar to those of the Board, in the matters relating to the prevention or detection of violations in

respect of securities laws, subject to the provisions of other laws for the time being in force in this regard:

Provided that the Board, for the purpose of furnishing any information to any authority outside India, may

enter into an arrangement or agreement or understanding with such authority with the prior approval of the

Central Government;”;

(ii) after sub-section (4), the following sub-section shall be inserted, namely:—

“(5) The amount disgorged, pursuant to a direction issued, under section 11B or section 12A of the Securities

Contracts (Regulation) Act, 1956 (42 of 1956) or section 19 of the Depositories Act, 1996, 22 of 1996. as the case may

be, shall be credited to the Investor Protection and Education Fund established by the Board and such amount shall be

utilised by the Board in accordance with the regulations made under this Ordinance.”.

3. Amendment of section 11AA.- In section 11AA of the principal Act,—

in sub-section (1)—

(a) after the word, brackets and figure “sub-section (2)”, the words, brackets, figure and letter “or sub-section

(2A)” shall be inserted;

(b) the following proviso shall be inserted, namely:—

“Provided that any pooling of funds under any scheme or arrangement, which is not registered with the Board

or is not covered under sub-section (3), involving a corpus amount of one hundred crore rupees or more shall be

deemed to be a collective investment scheme.”;

(ii) in sub-section (2), in the opening portion, for the word “company”, the word “person” shall be substituted;

(iii) after sub-section (2), the following sub-section shall be inserted, namely:—

“(2A) Any scheme or arrangement made or offered by any person satisfying the conditions as may be

specified in accordance with the regulations made under this Act.”;

(iv) in sub-section (3),—

(a) after the word, brackets and figure “sub-section (2)”, the words, brackets, figure and letter “or sub-section

(2A)” shall be inserted;

b) after clause (viii), the following clause shall be inserted, namely:—

“(ix) such other scheme or arrangement which the Central Government may, in consultation with the

Board, notify,”.

4. Amendment of section 11B.- In section 11B of the principal Act, the following Explanation shall be inserted, namely:—

“Explanation.—For the removal of doubts, it is hereby declared that the power to issue directions under this section shall

include and always be deemed to have been included the power to direct any person, who made profit or averted loss by indulging in

any transaction or activity in contravention of the provisions of this Act or regulations made thereunder, the disgorge an amount

equivalent to the wrongful gain made or loss averted by such contravention.”.

5. Amendment of section 11C.- In section 11C of the principal Act,—

(i) for sub-section (8), the following sub-section shall be substituted, namely:-

‘(8) Where in the course of an investigation, the Investigating Authority has reason to believe that any person or enterprise,

as the case may be, to whom a notice under sub-section (3) has been issued or might be issued,—

(a) has omitted or failed to provide the information or produce documents as required in the notice; or

(b ) would not provide the information or produce documents which shall be useful for, or relevant to,

the investigation; or

the investigation,

then, the Chairman may, after being satisfied that it is necessary to do so, authorise the Investigating Authority

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or any other officer of the Board (the officer so authorised in all cases being hereinafter referred to as the authorised

officer), to—

(i) enter and search, with such assistance, as may be required, the building, place, vessel, vehicle or aircraft

where such information or documents are expected or believed to be kept;

(II) break open the lock of any door, box, locker, safe almirah or other receptacle for exercising the powers

conferred by sub-clause (i), wherer the keys thereof are not available;

(iii) search any person who has got out of, or is about to get into, or is in, the building, place, vessel, vehicle or

aircraft, if the authorised officer has reason to suspect that such person has secreted about his person any such

books of account or other documents;

(iv) require any person who is found to be in possession or control of any books of account or other documents,

maintained in the form of electronic record, to provide the authorised officer the necessary facility to inspect such

books of account or other documents.

Explanation—For the purposes of this sub-clause, the expression “electronic record” shall have the meaning

assigned to it in clause (t) of sub-section (1) of section 2 of the information Technology Act, 2000. (21 of 2000)

(v) seize any such books of account or other documents found as a result of such search;

vi) place marks of identification on any books of account or other documents or make or cause to be made

extracts or copies therefrom;

(vii) record on oath the statement of any person who is found to be in possession or in control of the

information or documents referred to in sub-clause (i), (iii) and (iv).’;

(ii) for sub-section (9), the following sub-section shall be substituted, namely,—

“(9) The Board may make regulations in relation to any search or seizure under this section; and in

particular, without prejudice to the generality of the forgoing power, such regulations may provide for the

procedure to be followed by the authorised officer—

(a) for obtaining ingress into any building, place, vessel, vehicle or aircracft to be searched where free

ingress thereto is not available;

(b) for ensuring safe custody of any books of account or other documents or assets seized.”;

(iii) in sub-section (10), the words “and inform the Magistrate of such return” shall be omitted.

6. Insertion of new section 15JA.- After section 15JA of the principal Act, the following section shall be inserted and shall be

deemed to have been inserted with effect from the 20th day of April, 2007, namely:—

“15JB. Settlement of administrative and civil proceedings. - Notwithstanding anything contained in any other law for the

time being in force, any person, against whom any proceedings have been initiated or may be initiated under section 11, section 11B,

section 11D, sub-section (3) of section 12 or section 15-I, may file an application in writting to the Board proposing for settlement of the

proceeding initiated or to be initiated for the alleged defaults.

(2) The Board may, after taking into consideration the nature, gravity and impact of defaults, agree to the proposal for

settlement, on payment of such sum by the defaulter or on such other terms as may be determined by the Board in accordance with the

regulations made under this Act.

(3) The settlement proceedings under this section shall be conducted in accordance with the procedure specified in the

regulations made under this Act.

(4) No appeal shall lie under section 15T against any order passed by the Board or Adjudicating officer, as the case may be,

under this section.”.

7. Amendment of section 15T.- In section 15T of the principal Act, sub-section (2) shall be omitted.

8. Amendment of section 26.- In section 26 of the principal Act, sub-section (2) shall be omitted

9. Insertion of new sections 26A, 26B, 26C, 26D and 26E.- After section 26 of the principal Act, the following sections

shall be inserted, namely:—

“26A. Establishment of special courts.- (1) The Central Government may, for the purpose of providing speedy trial of

offences under this Act, by notification, establish or designate as many Special Courts as may be necessary.

(2) A Special Court shall consist of a single judge who shall be appointed by the Central Government with the concurrence of

the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working.

(3) A person shall not be qualified for appointment as a judge of a Special Court unless he is, immediately before such

appointment, holding the office of a Sessions Judge or an Additional Sessions Judge, as the case may be.

26B. Offences triable by Speical Courts.- Notwithstanding anything contained in the Code of Criminal Procedure, 1973,

(2 of 1974) all offences under this Act committed prior to the date of commencement of the Securities Laws (Amendment) Second

Ordinance, 2013 2 of 1974 or on or after the date of such commencement, shall be taken cognizance of and triable by the Special Court

established for the area in which the offence is committed or where there are more Special Courts than one for such area, by such one

of them as may be specified in this behalf by the High Court concerned.

26C. Appeal and revision.- The High Court may exercise, so far as may be applicable, all the powers conferred by

Chapters XXIX and XXX of the Code of Criminal Procedure, 1973( 2 of 1974.) on a High Court, as if a Special Court within the local

limits of the jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court.

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26D. Application of Code to proceedings before Special Court.- (1) Save as otherwise provided in this Act, the provisions

of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply to the proceedings before a Special Court and for the purposes of the

said provisions, the Special Court shall be deemed to be a Court of Session and the person conducting prosecution before a Special

Court shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of Criminal Procedure, 1973.

(2) The person conducting prosecution referred to in sub-section (1) should have been in practice as an Advocate for not less

than seven years or should have held a post, for a period of not less than seven years, under the Union or a State, requiring special

knowledge of law.

26E. Transitional provisons.- Any offence committed under this Act, which is triable by a Special Court shall, until a Special

Court is established, be taken cognizance of and tried by a Court of Session exercising jurisdiction over the area, notwithstanding

anything contained in the Code of Criminal Procedure, 1973. (2 of 1974)

Provided that nothing contained in this section shall affect the powers of the High Court under section 407 of the Code of

Criminal Procedure, 1973 (2 of 1974) to transfer any case or class of cases taken cognizance by a Court of Session under this

Section.”.

10. Insertion of new section 28A.- After section 28 of the principal Act, the following section shall be inserted, namely:—

‘28A. Recovery of amounts.- (1) If a person fails to pay the penalty imposed by the adjudicating officer 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

(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 221 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 purpose 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.

(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 porpose of sub-section (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.

11. Amendment to section 30.- In section 30 of the principal Act, in sub-section (2),—

(i) after clause (c), the following clauses shall be inserted, namely:—

“(ca) the utilisation of the amount credited under sub-section (5) of section 11;

(cb) the fulfillment of other conditions relating to collective investment scheme under sub-section (2A) of

section 11AA;

(cc) the procedure to be followed by the authorised officer for search or seizure under sub-section (9) of

section 11C;”;

(ii) after clause (d), the following clauses shall be inserted, namely:—

“(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.”.

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12. Insertion of new section 34A.- After section 34 of the principal Act, the following section shall be inserted, namely:—

“34A. Validation of certain acts. - Any act or thing done or purporting to have been done under the principal Act, in respect

of calling for information from, or furnishing information to, other authorities, whether in India or outside India, having functions similar to

those of the Board and in respect of settlement of administrative and civil proceedings, shall, for all purposes, be deemed to be valid

and effective as if the amendments made to the principal Act had been in force at all material times.”.

CHAPTER III

AMENDMENTS TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956

13. Amendment of section 12A. .- In section 12A of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) (hereafter

in this Chapter referred to as ‘the principal’ Act), the following Explanation shall be inserted, namely:—

“Explanation.— For the removal of doubts, it is hereby declared that power to issue directions under this section shall include

and always be deemed to have been included the power to direct any person, who made profit or averted loss by indulging in any

transaction or activity in contravention of the provisions of this Act or regulations made thereunder, to disgorge an amount equivalent to

the wrongful gain made or loss averted by such contravention.”.

14. Insertion of new section 23JA. - After section 23J of the principal Act, the following section shall be inserted and shall

be deemed to have been inserted with effect from the 20th day of April, 2007, namely:—

“23JA. Settlement of Administrative and Civil Proceedings. (1) Notwithstanding anything contained in any other law for

the time being in force, any person, against whom any proceedings have been initiated or may be initiated under section 12A or section

23-I, may file an application in writing to the Board proposing for settlement of the proceedings initiated or to be initiated for the alleged

defaults.

(2) The Board may, after taking into consideration the nature, gravity and impact of defaults, agree to the proposal for

settlement, on payment of such sum by the defaulter or on such other terms as may be determined by the Board in accordance with the

regulations made under the Securities and Exchange Board of India Act, 1992. (15 of 1992.)

(3) For the purpose of settlement under this section, the procedure as specified by the Board under the Securities and

Exchange Board of India Act, 1992 (15 of 1992.) shall apply

(4) No appeal shall lie under section 23L against any order passed by the Board or the adjudicating officer, as the case may

be under this section.”.

15. Insertion of new section 23JB. - After section 23JA of the principal Act as so inserted, the following section shall be

inserted, namely:—

23JB. (1) Recovery of amounts. - If a person fails to pay the penalty imposed by the adjudicating officer or fails to comply

with a direction of disgorgement order issued under section 12A 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;

(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 221 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 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 purpose 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 23L of this Act.

(2) The recovery officer shall be empowered to seek the assistance of the local district administration while exercising the

powers under sub-section (1).

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(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 12A, shall have

precedence over any other claim against such person.

(4) For the purposes of sub-section (1), (2) and (3) , the expression “Recovery Officer” menas any officer of the Board who

may be authorised, by general or special order in writing to exercise the powers of a Recovery Officer.’.

16. Amendment of Section 26.- In section 26 of the principal Act, sub-section (2) shall be omitted.

17. Insertion of new sections 26A, 26B, 26C, 26D and 26E .- After section 26 of the principal Act, the following sections

shall be inserted, namely:—

“26A. (1) Establishment of Special Courts.- The Central Government may, for the purpose of providing speedy trial of

offences under this Act, by notification, establish or designate as many Special Courts as may be necessary.

(2) A Special Court shall consist of a single judge who shall be appointed by the Central Government with the concurrence

of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working.

(3) A person shall not be qualified for appointment as a judge of Special Court unless he is, immediately before such

appointment, holding the office of a Sessions Judge or an Additional Sessions Judge, as the case may be.

26B. Offences triable by Special Courts.- Notwithstanding anything contained in the Code of Criminal Procedure, 1973,

(2 of 1974) all offences under this Act committed prior to the date of commencement of the Securities Laws (Amendment) Second

Ordinance, 2013 or on or after the date of such commencement, shall be taken congnizance of and triable by the Special Court

established for the area in which the offence is committed or where there are more Special Courts than one for such area, by such one

of them as may be specified in this behalf by the High Court concerned.

26C. Appeal and Revision. - The High Court may exercise, so far as may be applicable, all the power conferred by

Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 (2 of 1974) on a High Court, as if a Special Court within the local

limits of the jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court.

26D. Application of Code to proceedings before Special Court.- (1) Save as otherwise provided in this Act, the

provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply to the proceedings before a Special Court and for the

purposes of the said provisions, the Special Court shall be deemed to be a Court of Session and the person conducting prosecution

before a Special Court shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of Criminal

Procedure, 1973.

(2) The person conducting prosecution referred to in sub-section (1) should have been in practice as an Advocate for not

less than seven years or should have held a post, for a period of not less than seven years, under the Union or a State, requiring special

knowledge of law.

26E. Transitional provisions.- Any offence committed under this Act, which is triable by a Special Court shall, until a

Special Court is established, be taken cognizance of and tried by a Court of Session exercising jurisdiction over the area,

notwithstanding anything contained in the Code of Criminal Procedure, 1973. (2 of 1974)

Provided that nothing contained in this section shall affect the powers of the High Court under section 407 of the Code to

transfer any case or class of cases taken cognizance by a Court of Session under this section.”.

18. Insertion of new section 32.- After section 31 of the principal Act, the following section shall be inserted, namely:—

“32. Validation of Certain acts.- Any act or thing done or purporting to have been done under the principal Act, in respect

of settlement of administrative and civil proceedings, shall, for all purposes, be deemed to be valid and effective as if the amendments

made to the principal Act had been in force at all material times.”.

CHAPTER IV

AMENDMENTS TO THE DEPOSITORIES ACT, 1996

19. Amendment of section 19.- In section 19 of the Depositories Act, 1996 (22 of 1996) (hereafter in this chapter referred

to as the principal Act in this chapter), the following Explanation shall be inserted, namely:—

“Explanation.—For the removal of doubts, it is hereby declared that power to issue directions under this section shall

include and always be deemed to have been included the power to direct any person, who made profit or averted loss by indulging in

any transaction or activity in contravention of the provisions of this Act or regulations made thereunder, to disgorge an amount

equivalent to the wrongful gain made or loss averted by such contravention.”.

20. Insertion of new section 19-IA.- After section 19-I of the principal Act, the following section shall be inserted and shall

be deemed to have been inserted with effect from the 20th day of April, 2007, namely:—

Settlement of Administrative Civil Proceedings.- “19-IA. (1) Notwithstanding anything contained in any other law for the

time being in force, any person, against whom any proceedings have been initiated or may be initiated under section 19 or section 19H,

as the case may be, may file an application in writing to the Board proposing for settlement of the proceedings initiated or to be initiated

for the alleged defaults.

(2) The Board may, after taking into consideration the nature, gravity and impact of defaults, agree to the proposal for

settlement, on payment of such sum by the defaulter or on such other terms as may be determined by the Board in accordance with the

regulations made under the Securities and Exchange Board of India Act, 1992. (15 of 1992)

(3) For the purpose of settlement under this section, the procedure as specified by the Board under the Securities and

Exchange Board of India Act, 1992 (15 of 1992) shall apply.

(4) No appeal shall lie under section 23A against any order passed by the Board or the adjudicating officer under

this section.”.

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21. Insertion of new section 19-IB.- After section 19-IA of the principal Act as so inserted, the following shall be

inserted, namely:—

‘19-IB Recovery of amounts.- (1) If a person fails to pay the penalty imposed by the adjudicating officer or fails to

comply with a direction of disgorgement order issued under section 19 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;

(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 221 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 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 sons’ 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 23A of this Act.

(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 noncompliance with any direction issued by the Board under section 19, 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.

22. Amendment of section 22.- In section 22 of the Principal Act. sub-section (2) shall be omitted.

23. Insertion of new sections 22C, 22D 22E, 22F and 22G.- After section 22B of the principal Act, the following section

shall be inserted namely:-

“22C. Establishment of Special Courts.- (1) The Central Government may, for the purpose of providing speedy trial of

offences under this Act, by notification, establish or designate as many Special Courts as may be necessary.

(2) A Special Court shall consist of a single judge who shall be appointed by the Central Government with the concurrence

of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working.

(3) A person shall not be qualified for appointment as a judge of a Special Court unless he is, immediately before such

appointment, holding the office of a Sessions Judge or an Additional Sessions Judge, as the case may be.

22D. Offences triable by Special Courts.- Notwithstanding anything contained in the Code of Criminal Procedure, 1973,

(2 of 1974) all offences under this Act committed prior to the date of commencement of the Securities Laws (Amendment) Second

Ordinance, 2013 or on or after the date of such commencement, shall be taken cognizance of and triable by the Special Court

established for the area in which the offence is committed or where there are more Special Courts than one for such area, by such one

of them as may be specified in this behalf by the High Court concerned.

22E. Appeal and Revision.- The High Court may exercise, so far as may be applicable, all the powers conferred by

Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 (2 of 1974) on a High Court, as if a Special Court within the local

limits of the jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court.

22F. Application of Code to proceedings before Special Court.- (1) Save as otherwise provided in this Act, the

provisions of the Code of Criminal Procedure, 1973 shall apply to the proceedings before a Special Court and for the purposes of the

said provisions, the Special Court shall be deemed to be a Court of Session and the person conducting prosecution before a Special

Court shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of Criminal Procedure, 1973.

(2 of 1974)

(2) The person conducting prosecution referred to in sub-section (1) should have been in practice as an Advocate for not

less than seven years or should have held a post, for a period of not less than seven years, under the Union or a State, requiring special

knowledge of law.

100

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22G. Transitional provisions.- Any offence committed under this Act, which is triable by a Special Court shall, until a

Special Court is established, be taken cognizance of and tried by a Court of Session exercising jurisdiction over the area,

notwithstanding anything contained in the Code of Criminal Procedure, 1973: (2 of 1974)

Provided that nothing contained in this section shall affect the powers of the High Court under section 407 of the Code to

transfer any case or class of cases taken cognizance by a Court of Session under this section.”.

24.Amendment of section 23A.- In section 23A of the principal Act, sub-section (2) shall be omitted.

25. Insertion of new section 30A.- After section 30 of the principal Act, the following section shall be inserted, namely:—

“30A. Validation of certain acts.- Any act or thing done or purporting to have been done under the principal Act, in

respect of settlement of administrative and civil proceedings, shall, for all purposes, be deemed to be valid and effective as

if the amendments made to the principal Act had been in force at all material times.”.

26. Repeal and saving.- (1) The Securities Laws (Amendment) Ordinance, 2013 (Ord. 8 o 2013) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have

been done or taken under the corresponding provisions of this Ordinance.

PRANAB MUKHERJEE,

President.

P.K. MALHOTRA,

Secy. to the Govt. of India.

P.R. 105

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F PÉ¼ÀPÀAqÀ The Parliament (Prevention of Disqulification) Amendment Act, 2013 (No. 28 of 2013) C£ÀÄß ¸ÁªÀðd¤PÀgÀ ªÀiÁ»wUÁV

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MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 23rd September, 2013

The following Act of Parliament received the assent of the President on the 20th September, 2013, and is hereby

published for general information:-

THE PARLIAMENT (PREVENTION OF DISQUALIFICATION) AMENDMENT ACT, 2013

No. 28 OF 2013

[20^th September 2013]

An Act further to amend the Parliament (Prevention of Disqualification) Act, 1959.

BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:-

1. Short title and commencement.- (1) This Act may be called the Parliament (Prevention of Disqualification)

Amendment Act, 2013.

(2) It shall be deemed to have come into force on the 19th day of February, 2004.

2. Amendment of section 3.- In section 3 of the Parliament (Prevention of Disqualification) Act, 1959, (10 of 1959)

in clause (ba), for sub-clause (ii), the following sub-clauses shall be substituted, namely:-

"(ii) the National Commission for the Scheduled Castes constituted under clause (l) of article 338 of

the Constitution;

(iia) the National Commission for the Scheduled Tribes constituted under clause (1) of article 338A of

the Constitution;".

P.K. MALHOTRA,

Secy. to the Govt. of India.

P.R. 106

SC - 20

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