"Onshore Rupee Bonds" Declared Securities under SCRA; SEBI and RBI to regulate

Pallavi Saluja August 6 2014

The term "securities" has become a grundnorm for invoking jurisdiction of capital market regulator, the Securities and Exchange Board of India (SEBI). Last year, India witnessed one of the biggest corporate litigations of the decade between SEBI and Sahara on whether Optionally Fully Convertible Debentures are securities under Securities Contracts (Regulation) Act, 1956 (SCRA) and hence amenable to SEBI’s jurisdiction.

Section 2(h) of the SCRA defines securities to include shares, scrips, stocks, bonds, debentures, debenture stock, mutual fund units, instrument issued by any collective investment . . .

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