2
बहार गजट (असाधारण), 22 नव, बर 2013
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 16th September, 2013/Bhadra 25, 1935(saka)
THE SECURITIES LAWS (AMENDMENT)
SECOND ORDINANCE, 2013
No.9 or 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
Short title and commericement
1. (I) 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.
CHAPTER II
AMENDMENTS TO THE SECURITIES AND
EXCHANGE BOARD OF INDIA ACT, 1992
Amendment
of section II.
15 of 1992.
2. in section II of the Securities and Exchange! Board of' India Act, 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:-
H(b) 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:
3
बहार गजट (असाधारण), 22 नव, बर 2013
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:-
42 of 1956.
22 of 1996.
"(5) The amount disgorged, pursuant to a direction issued, under section 11B or
section 12A of the Securities Contracts (Regulation) Act, 1956 or section 19 of the
Depositories Act, 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.".
Amendment of Section 11 AA.
3. In section 11AA of the principal Act,- (i) 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 shaIl be inserted, namelyi:-
"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) 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,".
Amendment of section 11B
4. In section lIB of the principal Ad, 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. In section 11C of the principal Act,-
Amendment of Section 11C.
(i) for sub-section (8), the following sub-section shall be substitued, 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
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बहार गजट (असाधारण), 22 नव, बर 2013
for, or relevant to, the investigation; or
(c) would destroy, mutilate, alter, falsify or secrete the information or documents
useful for, or relevant to, the investigation, then, the Chairman may, after being satisfied
that it is necessary to do so, authorise the Investigating Authority 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 cluase (t) of sub-section (I) 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 cf 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.
Insertion of new section 15JB
6. 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:--
Settlement of administrative and civil proceedings.
"l5JB. (I) 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 11 B, section I I D, sub-section (3) of section 12
or section 15-1, may file an application in writting to the Board proposing for settlement
5
बहार गजट (असाधारण), 22 नव, बर 2013
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 I5T against any order passed by the Board
or Adjudicating officer, as the case may be, under this section.".
Amendment of section 15T
7. In section 15T of the principal Act,sub-section (2) shall be omitted.
Amendment of section 26
8. In section 26 of the principal Act, sub-section (2) shall be omitted.
9. After section 26 of the principal Act, the following section shall be inserted
namely:-
Insertion of new sections
26A, 26B, 26C, 26D and 26E
"26A. (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.
Establishment of Special Courts.
(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.
2 of 1974
Offences triable by Special Courts.
26B. Notwithstanding anything contained in the Code of Criminal Procedure,
1973, 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.
2 of 1974
Appeal and Revision
26C. The High Court may exercise, so far as may be applicable, all the powers
Appeal and conferred by Chapters XXIX and XXX of the Code of Criminal Procedure, 1973
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.
2 of 1974
Application of code to proceeding
before Special Court
26D. (1) Save as otherwise provided in this Act, the provisions ofthe Code of
Criminal Procedure, 1973 shall apply to the proceedings before a Special Court and for
6
बहार गजट (असाधारण), 22 नव, बर 2013
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.
2 of 1974
26E. 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 to transfer any
case or class of cases taken cognizance by a Court of Session under this Section.".
Insertion of new section 28A
10. After section 28 of the principal Act, the following section shall be inserted,
namely:-
Recovery of amounts
'28A. (1) If a person fails to pay the penalty imposed by the adjudicating officer
Recovery of 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;
43 of 1961
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 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 I.-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
7
बहार गजट (असाधारण), 22 नव, बर 2013
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.
43 of 1961
Explanation 2.-Any reference under the provisions of the Second and Third
Schedules to the Income-tax Act, 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.
43 of 1961
Explanation 3.-Any reference to appeal in Chapter XVIID and the Second Schedule
to the Income-tax Act, 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 (J).
(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. In section 30 of the principal Act, in sub-section (2),-
Amendment to section 30
(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 fulfilment of other conditions relating to collective investment
scheme under sub-section (2A) of section 11 AA;
(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.".
12. After section 34 of the principal Act, the following section shall be inserted,
namely:-
Insertion of new section 34A
"34A. 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.".
8
बहार गजट (असाधारण), 22 नव, बर 2013
CHAPTER III
AMENDMENT TO THE SECURITIES CONTRACTS
(REGULATION) Act, 1956
43 of 1956
Amendment of Section 12A
13. In section 12A of the Securities Contracts (Regulation) Act, 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.".
Insertion of new section 23JA
14. 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:-
Settlement of Administrative and Civil Proceeding
"23JA. (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 23-1, may file an application in writing to the
Board proposing for settlement of the proceedings initiated or to be initiated for the
alleged defaults.
15 of 1992
(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 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."
Insertion of new section 23JB
15. After section 23JA of the principal Act as so inserted, the following section shall
be inserted, namely:-
Recovery of amounts
'23JB. (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 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;
9
बहार गजट (असाधारण), 22 नव, बर 2013
(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,
43 of 1961
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 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 there under 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 I.-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.
43 of 1961
Explanation 2.--Any reference under the provisions of the Second and Third
Schedules to the Income-tax Act, 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.
43 of 1961
Explanation 3.-Any reference Hi appeal in Chapter XVIID and the Second Schedule
to the Income-tax Act, 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 (I).
(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.'
Amendment of section 26
16. 1n section 26 of the principal Act, sub-section (2) shall be omitted.
Insertion of new sections
26A, 26B, 26C, 26D and 26E
17. After section 26 of the principal Act, the following sections shall be inserted,
namely:-
10
बहार गजट (असाधारण), 22 नव, बर 2013
Establishment of Special Courts
"26A. (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 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.
2 of 1974
Offences triable by Special Courts
26B. Notwithstanding anything contained in the Code of Criminal Procedure,
1973, all offences under this Act committed prior to the date of commencement of the
Securities Laws (Amendment) Second Ordinance, 20 13 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.
2 of 1974
Appeal and Revision
26C. 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 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.
2 of 1974
Application of code to Proceeding before Special Court
26D. (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) 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.
2 of 1974
Transitional provisions
26E. 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:
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."
11
बहार गजट (असाधारण), 22 नव, बर 2013
Insertion of new section 32
18. After section 31 of the principal Act, the following section shall be inserted,
namely:-
Validation of Certain acts
"32. 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
AMENDMENT TO THE DEPOSITORIES ACT, 1996
Amendment of section 19
22 of 1996
19. In section 19 of the Depositories Act, 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.".
Insertion of new section 19-IA
20. After section 19-1 of the principal Act, the following section shall be inserted and
shall be deemed to have been inserted with cffrect 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.
15 of 1992
(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 shall apply.
(4) No appeal shall lie under section 23A against any order passed by the Board or the
adjudicating officer under this section.".
Insertion of new section 19-IB
21. After section 19-IA of the principal Ad as so inserted, the following shall be
inserted, namely:-
Recovery of amounts
'19-IB (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
12
बहार गजट (असाधारण), 22 नव, बर 2013
(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 221 to 227, 228A, 229, 232, the
Second and Third Schedules to the Income-tax Act, 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.
43 of 1961
Explanation 2.- Any reference under the provisions of the Second and Third
Schedules to the Income-tax Act, 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.
43 of 1961
Explanation 3.-Any reference to appeal in Chapter XVIID and the Second
Schedule to the Income-tax Act, 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 non-
compliance 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.
Amendment of section 22
22. In section 22 of the principal Act, sub-section (2) shall be omitted.
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Insertion of new sections 22C, 22D, 22E, 22F, and 22G
23. After section 22B of the principal Act, the following sections shall be inserted,
namely:-
Establishment of Special Courts
"22C. (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.
2 of 1974
Offences triable by Special Courts
22D. Notwithstanding anything contained in the Code of Criminal Procedure,
1973, 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.
Appeal and Revision
2 of 1974
22E. 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 Prodedure, 1973 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 with in the local limits of the jurisdiction of the High Court.
Application of Code to proceedings before Special Court
2 of 1974
22F. (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 ofclause (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.
Transitional provisions
2 of 1974
22G. 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:
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
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बहार गजट (असाधारण), 22 नव, बर 2013
cognizance by a Court of Session under this section.".
Amendment of section 23A
24. In section 23A of the principal Act, sub-section (2) shall be omitted.
Insertion of new section 30A
25. After section 30 of the principal Act, the following section shall be inserted,
namely:-
Validation of certain acts
"30A. 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.".
Repeal and saving Ord 8 of 2013
26. (I) The Securities Laws (Amendment) Ordinance, 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,
Secretary to the Government of India.
—————
अधी-क, सिचवालय मुिणालय,
बहार, पटना ारा ूकािशत एवं मु3ित।
बहार गजट (असाधारण) 865-571+100-ड0ट0पी0।
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