This section is for granting the Central Government the power to make rules to carry out the provisions of the Act.
What the section says
In plain terms
(1)The Central Government may, by notification, make rules for carrying out the provisions of this Act.
The Central Government has the power to create rules to implement the provisions of this Act by issuing a notification.
(2)Without prejudice to the generality of the provisions of sub-section (1), the Central Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provision is to be or may be made by rules.
The Central Government can make rules for any matter that this Act requires or allows to be prescribed or covered by rules.
(3)Any rule made under sub-section (1) may provide that a contravention thereof shall be punishable with fine which may extend to five thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which such contravention continues.
Rules made under this section can specify penalties for non-compliance, including a fine of up to five thousand rupees and an additional fine of up to five hundred rupees for each day the contravention continues.
(4)Every rule made under this section and every regulation made by Securities and Exchange Board 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 regulation or both Houses agree that the rule or regulation should not be made, the rule or 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 rule or regulation.
All rules made under this section and regulations created by the Securities and Exchange Board must be presented to each House of Parliament for 30 days, and can be modified or annulled by both Houses.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.