The Negotiable Instruments Act, 1881 (Section 138): Legal Overview The Negotiable Instruments Act, 1881 (NI…

The Reserve Bank of India Act, 1934 is the main law that governs how the…

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Abstract FinTech and digital payments have become central to India’s economic transformation, enabling rapid financial…

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Section 14 of The IBC,2016 Moratorium, Imposes a stay on legal proceedings against a corporate debtor undergoing insolvency, protecting its assets. Whereas section 138 of NI Act, Cheque Dishonour Makes cheque bounce a criminal offense if issued without sufficient funds, allowing legal action against the issuer.

This project explores the concept of disgorgement and its utilisation by the Securities and Exchange Board of India (“SEBI”). The research and analysis done through this research project reveals that SEBI’s rationale for employing disgorgement is based on its ‘equitable’ and ‘remedial’ authority, aiming to recover ill-gotten gains from wrongdoers and restore the situation to its original state. However, this differs from disgorgement practices elsewhere, which aim to strip wrongdoers of their gains without necessarily restoring the status quo.

The author observes that SEBI’s disgorgement orders do not consistently align with its stated justification, as none of the orders of the SEBI, till now, actually return the wrongdoer to their original position. Moreover, disgorgement decisions are made at the discretion of whole-time members (“WTMs”), who hold executive authority within the government. This exercise of public power without clear legislative or judicial boundaries raises significant concerns regarding regulatory governance.

Complicating matters further is the destination of disgorgement proceeds, which are directed to the Investor Protection and Education Fund controlled by the SEBI, unlike penalties that contribute to the Consolidated Fund of India. The findings suggest that SEBI needs to reassess how it conceptualises disgorgement, its underlying objectives, and the procedures governing its application. This analysis of disgorgement has implications beyond India and is pertinent to similar discussions in other jurisdictions, including the United States.

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In India, the power of police to freeze bank accounts during criminal investigations has long…

Dishonour of a cheque is an important part of banking law. It affects trust in…

The Reserve Bank of India Act, 1934 is the cornerstone of India’s monetary and banking…

The banking sector is the backbone of India’s financial system. It supports economic growth by…

Cheque Credibility And Legal Consequences “A cheque is as good as cash, but only if…

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Abstract This article distills a modern public debate between Marxian economist Richard D. Wolff and…