Securities and Exchange Board of India (SEBI) Act, 1992

Introduction

To regulate

and monitor market activities and to

promote healthy development of the market.

It was constituted in 1988 by a resolution of Government of India and it was made a statutory body of SEBI Act, 1992

Objectives

To promote the interests of investors in securities

To promote the development of the securities

market.

To regulate the securities market, and For matters connected herewith or incidental thereto

Management of the board

The SEBI will be managed by a board consisting of the following: Chairman Two members from among the officials of the ministries of central government dealing with finance and law One member from amongst the officials of the Reserve Bank of India. Two other members to be appointed by the Central Government The management of SEBI will be vested in the board and the chairman shall have the power of general superintendence and direction

Power and function of SEBI

Regulate stock exchange, stock brokers, collective

investment schemes, capital issues.

Promote

investors

education

self-regulatory,

organization

Prohibit inside trade, frauds.

Changing Dimensions

Amended in 1995

Got empowered to impose monetary penalties on

capital market intermediaries for violations.

High court became appellate body.

limitations

Works in the framework of central government

Not given autonomy dominated by RBI even.

Consumer protection Act 1986

It was enacted for better protection of the interests of

consumer.

All the provisions of the Act have come into force from 1 July 1987.

Act was amended in 1991,1993 and December 2002 Final amendment was done on 5 March 2004

Why protect the consumers?

Reasons for Enacting the Act

Collective Bargaining

Sellers Lobby; Forming cartels; Artificially keeping prices high!!!!

Multiple Laws

India Contract Act; Sale of Goods Act; Essential Commodities Act

Hurdles in the Litigation

Going to regular court; Expensive & Time Consuming

Remedy

Punishment in the form of Punitive & Deterrent measure

Hence There was

An Act to provide for the better protection of the interests of consumers and for that purpose to make provisions for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith.

Short title, extent and application: (1). This Act may be called the Consumer Protection Act, 1986. (2). It extends to the whole of India except the State of Jammu and Kashmir. (3). Save as otherwise expressly provided by the Central Government by notification, this Act shall apply to all goods and services.

Objectives of CPA, 1986

Education Heard

Safety

Consumer Rights

Redressal

Choose

Information

Right of Consumers
(a) The right to be protected against marketing of goods which are hazardous to life and property; (b) The right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices; (c) The right to be assured, wherever possible, access to an authority of goods at competitive prices; (d) The right to be heard and to be assured that consumers interests will receive due consideration at appropriate forums; (e) The right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; and (f) The right to consumer education.

Consumer Protection Council

The Central Consumer Protection Council consist of the following members 1) Minister in charge of the consumer affairs shall be the chairman 2) such number of other official or non-official members Central Council shall conduct meeting at least once in an year. The objects of the Central Council shall be to promote and protect the rights of the consumers

The State Consumer Protection Councils consist of the following members Minister in charge of consumer affairs in the State Government who shall be its Chairman such number of other official or non-official members prescribed by the State Government such number of other official or non-official members, not exceeding ten, as may be nominated by the Central Government The State Council shall meet as and when necessary but not less than two meetings shall be held every year.

The District Consumer Protection Council consist of the following members 1) Collector of the district (by whatever name called), who shall be its Chairman such number of other official and non-official members representing such interests as may be prescribed by the State Government. District Council shall meet as and when necessary but not less than two meetings shall be held every year

CONSUMER DISPUTES REDRESSAL AGENCIES

following agencies are established by government for consumer dispute redressal process. 1) "District Forum 2) State Commission 3) National Consumer Disputes Redressal Commission

Composition of the District Forum 1)a person who is, or has been, or is qualified to be a District Judge, who shall be its President 2)two other members, one of whom shall be a woman, who shall have the following qualifications, namely :(i) be not less than thirty-five years of age, (ii) possess a bachelors degree from a recognized university, (iii) be persons of ability, integrity and standing, and have adequate problems relating to economics, law, commerce, accountancy, industry public affairs or administration.

Every member of the District Forum shall hold office for a term of five years or up to the age of 65 years, whichever is earlier. Jurisdiction of the District Forum.--( I) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees twenty lakhs.

Manner in which complaint shall be made A complaint in may be filed with a District Forum by(a) the consumer (b) any recognised consumer association (c) one or more consumers (d) Central or the State Government The complaint should be given with required amount of fee. Once the compliant is received it should proceed with it with in 21 days .

District forum will sent a copy of complaint to the counter parties. If the counter party is not taking appropriate action with in 30 days forum will proceed the action. If opposition reply by denying the complaint forum will fix date to here the parties and will take decision after hearing both parties.

Finding of the District Forum

District forum will have following dicisions: (a) to remove the defect pointed but by the appropriate laboratory from the goods in question; (b) to replace the goods with new goods of similar description which shall be free from any defect; (c) to return to the complainant the price, or, as the case may be, the charges paid by the complainant; (d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party

e)to remove the defects in goods or deficiencies in the services (f) to discontinue the unfair trade practice (g) to withdraw the hazardous goods from being offered for sale; (h)to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature (i) to provide for adequate costs to parties

Appeal.-Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission within a period of thirty days from the date of the order, in such form and manner as may be prescribed.

Composition of the State Commission

State Commission shall consist of(a) a person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President: (b) not less than two, and not more than such number of members, as may be prescribed, and one of who shall be a woman.

Jurisdiction of the State Commission (i) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees exceeds rupees twenty lakhs but does not exceed rupees one crore (ii) appeals against the orders of any District Forum within the State.

Appeals.--Any person aggrieved by an order made by the State Commission in exercise of its powers conferred by sub-clause (i) of clause (a) of section 17 may prefer an appeal against such order to the National Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed.

National Commission
(a) a person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government, who shall be its President; (b) not less than four, and not more than such number of members, as may be prescribed, and one of whom shall be a woman. Jurisdiction of the National Commission (i) complaints where the value of the goods or services and compensation, if any(i) complaints where the value of the goods or services and compensation, if any exceed one crore (ii) (ii) appeals against the orders of any State Commission

Appeal.-Any person, aggrieved by an order made by the National Commission in exercise of its powers may prefer an appeal against such order of the Supreme Court within a period of thirty days from the date of the order: Limitation period. The District Forum, the State Commission or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen