Section 30. Power to make rules

30. Power to make rules. —(1) The Central Government may, by notification in the Official Gazette, make rules for the purpose of carrying into effect the objects of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for,— (a) the manner in which applications may be made, the particulars which they should contain and the levy of a fee in respect of such applications; (b) the manner in which any inquiry for the purpose of recognising any stock exchange may be made, the conditions which may be imposed for the grant of such recognition, including conditions as to the admission of members if the stock exchange concerned is to be the only recognised stock exchange in the area; and the form in which such recognition shall be granted; 1. Subs. by Act 49 of 1959, s. 3, for section 28 (w.e.f. 8-12-1959). 2. Subs. by Act 31 of 1999, s. 9, for section 29A (w.e.f. 22-2-2000). 3. Ins. by Act 50 of 2019, s. 33 and the II Sch. (w.e.f. 1-10-2020). (c) the particulars which should be contained in the periodical returns and annual reports to be furnished to the Central Government; (d) the documents which should be maintained and preserved under section 6 and the periods for which they should be preserved; (e) the manner in which any inquiry by the governing body of a stock exchange shall be made under section 6; (f) the manner in which the bye-laws to be made or amended under this Act shall before being so made or amended be published for criticism; (g) the manner in which applications may be made by dealers in securities for licenses under section 17, the fee payable in respect thereof and the period of such licences, the conditions subject to which licences may be granted, including conditions relating to the forms which may be used in making contracts, the documents to be maintained by licensed dealers and the furnishing of periodical information to such authority as may be specified and the revocation of licences for breach of conditions; 1[(h) the requirements which shall be complied with— (A) by public companies for the purpose of getting their securities listed on any stock exchange; (B) by collective investment scheme for the purpose of getting their units listed on any stock exchange.] 2[(ha) the grounds on which the securities of a company may be delisted from any recognised stock exchange under sub-section (1) of section 21A; (hb) the form in which an appeal may be filed before the Securities Appellate Tribunal under sub-section (2) of section 21A and the fees payable in respect of such appeal; (hc) the form in which an appeal may be filed before the Securities Appellate Tribunal under section 22A and the fees payable in respect of such appeal; (hd) the manner of inquiry under sub-section (1) of section 23-I; (he) the form in which an appeal may be filed before the Securities Appellate Tribunal under section 23L and the fees payable in respect of such appeal;] (i) any other matter which is to be or may be prescribed. 3[(3) Every rule 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 both Houses agree that the rule should not be made, the rule 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.] 4[30A. Special provisions related to commodity derivatives. —(1) Nothing contained in this Act shall apply to non-transferable specific delivery contracts: Provided that no person shall organise or assist in organising or be a member of any association in any area to which the provisions of section 13 have been made applicable (other than a stock exchange) which provides facilities for the performance of any non-transferable specific delivery contract by any party thereto without having to make or receive actual delivery to or from the other party to the contract or to or from any other party named in the contract. 1. Subs. by Act 31 of 1999, s. 10, for clause (h) (w.e.f. 22-2-2000). 2. Subs. by Act 1 of 2005, s. 15, for clause (ha) (w.e.f.12-10-2004). 3. Subs. by s. 15, ibid ., for sub-section (3) (w.e.f. 12-10-2004). 4. Ins. by Act 20 of 2015, s. 135 (w.e.f. 28-9-2015). (2) Where in respect of any area, the provisions of section 13 have been made applicable in relation to commodity derivatives for the sale or purchase of any goods or class of goods, the Central Government may, by notification, declare that in the said area or any part thereof as may be specified in the notification all or any of the provisions of this Act shall not apply to transferable specific delivery contracts for the sale or purchase of the said goods or class of goods either generally, or to any class of such contracts in particular. (3) Notwithstanding anything contained in sub-section (1), if the Central Government is of the opinion that in the interest of the trade or in the public interest it is expedient to regulate and control non-transferable specific delivery contracts in any area, it may, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply to such class or classes of non-transferable specific delivery contracts in such area in respect of such goods or class of goods as may be specified in the notification, and may also specify the manner in which and the extent to which all or any of the said provisions shall so apply.] 1[30B. Special provisions related to pooled investment vehicle.— (1) Notwithstanding anything contained in the Indian Trust Act, 1882 (2 of 1882) or in any other law for the time being in force or in any judgment, decree or order of any Court, Tribunal or any other authority, a pooled investment vehicle, whether constituted as a trust or otherwise, and registered with the Securities and Exchange Board of India shall be eligible to borrow and issue debt securities in such manner and to such extent as may be specified under the regulations made by Securities and Exchange Board of India in this behalf. (2) Every pooled investment vehicle referred to in sub-section (1) shall, subject to the provisions of the trust deed, be permitted to provide security interest to lenders in terms of the facility documents entered into by such pooled investment vehicle. (3) Where any pooled investment vehicle referred to in sub-section (1) defaults in repayment of principal amount or payment of interest or any such amount due to the lender, the lender shall recover the defaulted amount and enforce security interest, if any, against the trust assets, by initiating proceedings against the trustee acting on behalf of such pooled investment vehicle in accordance with the terms and conditions specified in the facility documents: Provided that on initiation of the proceedings against the trust assets, the trustee shall not be personally liable and his assets shall not be utilised towards recovery of such debt. (4) The trust assets, which remain after recovery of defaulted amount, shall be remitted to the unit holders on proportionate basis.] 2[31. Power of Securities and Exchange Board of India to make regulations. —(1) Without prejudice to the provisions contained in section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Securities and Exchange Board of India, may, by notification in the Official Gazette, make regulations consistent with the provisions of this Act and the rules made thereunder to carry out the purposes of this Act. 3[(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 manner, in which at least fifty-one per cent. of equity share capital of a recognised stock exchange is held within twelve months from the date of publication of the order under sub-section (7) of section 4B by the public other than the shareholders having trading rights under sub-section (8) of that section; (b) the eligibility criteria and other requirements under section 17A.] 4[(c) the terms determined by the Board for settlement of proceedings under sub-section (2) of section 23JA; 1. Ins. by Act 13 of 2021, s. 149 (w.e.f. 1-4-2021). 2. Ins. by Act 1 of 2005, s. 16 (w.e.f. 12-10-2004). 3. Subs. by Act 27 of 2007, s. 5, for sub-section (2) (w.e.f. 28-5-2007). 4. Ins. by Act 27 of 2014, s. 39 (w.e.f. 8-9-2014). (d) 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.] (3) 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 regulation or both Houses agree that the regulation should not be made, the 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 regulation.] 1[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.] 2. Ins. by s. 40, ibid. (w.e.f. 8-9-2014).