PART VII
AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992
Amendment of Act 15 of 1992.
148. In the Securities and Exchange Board of India Act, 1992, in section 12, after sub-section (1B), the following sub-section shall be inserted with effect from the 1st day of April, 2021, namely:––
“(1C) No person shall sponsor or cause to be sponsored or carry on or cause to be carried on the activity of an alternative investment fund or a business trust as defined in clause (13A) of section 2 of the Income-tax Act, 1961, (43 of 1961.) unless a certificate of registration is granted by the Board in accordance with the regulations made under this Act.”.
Notes on Clauses:
Clause 148 of the Bill seeks to amend section 12 of the Securities and Exchange Board of India Act, 1992 relating to regulation of stock-brokers, sub-brokers, share transfer, agents, etc.
It is proposed to insert a new sub-section (1C) in the said section so as to provide that any alternative investment fund or a business trust as defined in clause (13A) of section 2 of the Income-tax Act, 1961, shall establish and operate only after the Securities and Exchange Board of India grants a certificate of registration in accordance with the regulations made under the said Act.
This amendment will take effect from 1st April, 2021.
