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Corporate Legal Framework

Notes (i) Regulating substantial acquisition of shares and takeover of companies;

(j) Calling for information from, undertaking inspection, conducting inquiries and audits of
the stock exchanges, mutual funds and other persons associated with the securities market,
intermediaries and self-regulatory organisations in the securities market;

(k) Calling for information and record from any bank or any other authority or board or
corporation established or constituted by or under any central, state or provincial Act
in respect of any transaction in securities which is under investigation or inquiry by the
Board;
(l) Performing such functions and exercising such powers under the provisions of the Securities
Contracts (Regulation) Act, 1956, as may be delegated to it by the Central Government;
(m) Levying fees or other charges for carrying out the purposes of this section;
(n) Conducting research for the above purposes;

(o) Calling from or furnishing to any such agencies, as may be specified by the Board,
such information as may be considered necessary by it for the efficient discharge of its

functions;
(p) Performing such other functions as may be prescribed.

For carrying out the duties assigned to it under the Act, SEBI has been vested with the same
powers as are available to a Civil Court under the Code of Civil Procedure, 1908 for trying a suit
in respect of the following matters:
(i) The discovery and production of books of account and other documents at the place and
time indicated by SEBI.

(ii) Summoning and enforcing the attendance of persons and examining them on oath.
(iii) Inspection of any books, registers and other documents of any person listed in Section 12
of the Act, namely stockbrokers, sub-brokers, share transfer agents, bankers to an issue,
trustee of trust deed, registrar to an issue, merchant bankers, underwriters, portfolio
managers, investment advisors and other such intermediaries associated with securities
markets.
(iv) Inspection of any book or register or other document or record of the company referred to
in sub-section (2A);
(v) Issuing commissions for the examination of witnesses or documents.

Power to Issue Directions

Section 11B of the Act provides that if SEBI is satisfied after making due enquiries, that it is
necessary:
(i) in the interest of investors, or orderly development of securities market; or
(ii) to prevent the affairs of any intermediary or other persons referred to in Section 12 being
conducted in a manner detrimental to the interests of investors or securities market; or
(iii) to secure the proper management of any such intermediary or person, it may issue such
directions –

(a) to any person or class of persons referred to in Section 12, or associated with the
securities market; or

(b) to any company in respect of matters specified in Section 11A, as may be appropriate
in the interests of investors in securities and the securities market.

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