KIND ATTENTION TAXPAYERS!

The due date for filing of Income Tax Returns (ITRs) for AY 2025-26, originally due on 31st July 2025, was extended to 15th September 2025.

The Central Board of Direct Taxes has decided to further extend the due date for filing these ITRs for AY 2025-26 from 15th September, 2025 to 16th September, 2025.

To enable changes in the utilities, the e- filing portal will remain in maintenance mode from 12:00 AM to 02:30AM on 16th September 2025.
Press Release issued:

KIND ATTENTION TAXPAYERS!

With filing deadlines approaching, many taxpayers are reporting difficulties in accessing the Income Tax e-Filing Portal. While heavy traffic and server load are common around due dates, in many cases the issue may actually arise from local system or browser settings.

The Income Tax Department has advised the following quick fixes, which often resolve such problems:

🔹 Simple Steps to Improve Access

1. Delete Temporary Files

   • Press Win + R → type temp and %temp% → delete all files.

2. Clear Browser Cache & Cookies

   • Go to browser Settings → Clear browsing data (cache + cookies).

3. Use a Supported Browser

   • Prefer the latest version of Chrome or Edge.

4. Open in Incognito/Private Mode

   • Shortcut: Ctrl + Shift + N (Chrome/Edge) OR Ctrl + Shift + P (Firefox).

5. Disable Browser Extensions

   • Turn off ad-blockers, VPNs, or privacy tools that may interfere with the portal.

6. Update Your Browser

   • Ensure you are using the most up-to-date version.

7. Try a Different Network

   • Switch from office Wi-Fi to home Wi-Fi or use a mobile hotspot.

🔹 Final Note

Most access issues can be resolved by following the above steps. If problems persist, taxpayers are advised to reach out to the Income Tax Helpdesk through official support channels for assistance.

Here’s a more detailed list you can use if the Income Tax Portal is slow:

✅ Troubleshooting Steps

1. Non-peak hours – Try early morning (6–9 AM) or late night (after 11 PM).

2. Switch browsers – Chrome, Edge, Firefox, or even mobile browsers sometimes load faster.

3. Use Incognito/Private Mode – Avoids cached errors and stuck sessions.

4. Clear cache, cookies & saved passwords – A fresh login often works better.

5. Disable extensions / pop-up blockers – Some browser add-ons interfere with site loading.

6. Check your internet speed – A weak or fluctuating connection slows down OTPs and uploads.

7. Try Netbanking Login – Instead of PAN/Aadhaar login, many banks offer direct portal login.

8. Use “Download Utility” – For ITR filing, use the offline Java/Excel/JSON utility; then upload later when the site responds.

9. Retry with smaller uploads – If uploading documents, compress files within the allowed size.

10. Alternate payment modes – For tax payment, use Netbanking, Debit Card, NEFT/RTGS, or UPI instead of waiting for the challan page to load.

✅ Additional Tips

• Check official updates – Visit the Income Tax Portal Home Page for downtime/maintenance notices.

• Save progress often – The site may log out unexpectedly.

• Avoid last-day rush – Try filing a day or two earlier to avoid portal overload.

• Raise a ticket – If you’re repeatedly stuck, use the “Helpdesk” option or call Income Tax e-filing helpdesk (1800 103 0025 / 1800 419 0025).

the Income Tax e-filing site often becomes slow around due dates (ITR filing, TDS, advance tax payments, etc.) because of high traffic.

✅ Some tips you can try:

• Use the site during non-peak hours (early morning or late night).

• Try different browsers (Chrome/Edge/Firefox) or use incognito mode.

• Clear cache & cookies before logging in.

• If using Netbanking login, try that route instead of PAN login.

• Check the official Income Tax portal status update — sometimes they announce downtime/maintenance.

  The Income Tax Portal often faces problems near due dates because of heavy traffic, server load, or maintenance. The common issues are:

  🔹 Common Problems

  • Very slow loading or login failure.

  • OTP not received or delays in authentication.

  • Challan payment page not opening.

  • Error messages while uploading ITR / TDS.

  • Session timeout even after entering details.

  🔹 Suggested Solutions

  1. Use non-peak hours – early morning or late night.

  2. Clear cache/cookies or use incognito/private window.

  3. Switch browsers – Chrome, Edge, or Firefox.

  4. Try Netbanking login instead of PAN login.

  5. Use the Offline Utility (JSON/Excel) to prepare the return, then upload when the site is stable.

  6. Use alternative payment modes – Netbanking, Debit Card, NEFT/RTGS, UPI.

  7. Check official downtime updates on incometax.gov.in.

  8. Save progress frequently to avoid data loss.

  👉 If still unresolved, you can contact the Income Tax Helpdesk:
  📞 1800-103-0025 or 1800-419-0025

• Income Tax Portal Issues: Why the Site is Slow and How to Manage

  Filing income tax returns and making online tax payments has become much easier with the digital portal introduced by the Income Tax Department. However, during peak filing seasons, many taxpayers and professionals encounter a common frustration — the Income Tax e-filing portal becomes slow or unresponsive.

  Why Does the Site Slow Down?

  1. High Traffic Load – On or near due dates, lakhs of users log in simultaneously, which overwhelms the servers.

  2. Technical Updates – The portal undergoes frequent maintenance and version upgrades.

  3. Heavy File Uploads – Bulk TDS returns, audit reports, and large attachments add to the load.

  4. Payment Gateway Bottlenecks – Delays often occur on challan/payment pages when banks are also processing large volumes.

  Common Problems Taxpayers Face

  • Difficulty logging in.

  • OTPs not being received on time.

  • Session timeouts while filing returns.

  • Errors while uploading JSON files or attachments.

  • Challan generation/payment failure.

  Practical Solutions and Tips

  • File during non-peak hours: Early mornings or late nights usually work better.

  • Use different browsers or incognito mode: Helps bypass cache-related errors.

  • Clear cache and cookies regularly: Ensures smoother login.

  • Use Offline Utility: Prepare your ITR offline and upload when the portal stabilizes.

  • Try alternative payment options: Netbanking, NEFT/RTGS, or UPI if challan pages are stuck.

  • Save progress frequently: Avoids data loss in case of sudden timeouts.

  • Check official updates: The portal often posts downtime/maintenance notices.

  What Should Taxpayers Do?

  • Plan ahead – Avoid waiting until the last day to file or pay.

  • Keep documents ready – So filing is faster once the site works.

  • Contact Helpdesk if needed – The Income Tax helpdesk (1800 103 0025 / 1800 419 0025) can assist with technical issues.

  Conclusion

  While the Income Tax portal has significantly simplified compliance, technical glitches are still a reality, especially during peak seasons. By being proactive, using offline tools, and filing in advance, taxpayers and professionals can avoid last-minute stress.

1. Section – I Introduction & Corporate Insolvency Resolution Process(CIRP) under Insolvency and Bankruptcy Code, 2016.
2. Section – II IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
3. Section -III Adjudicating Authority for Corporate Persons
4. Section – IV Offences and Penalties

Question No.1: MCQ for Pre Test- Corporate Restructuring, Valuation and Insolvency 

Which of the given statement is incorrect in respect of “Corporate Applicant” means?

• Corporate Debtor, or
• An individual who is in charge of managing the operations and resources of the corporate debtor, or
• A person in favour of whom security interest is created or
• A person who has the control and supervision over the financial affairs of the corporate debtor

Question No.2

Bankruptcy Law Reforms Committee (BLRC) was set up under the Chairmanship of Shri______

• J J Irani
• TK Viswanathan
• N L Mitra
• V B Eradi

Question No.3: MCQ for Pre Test- Corporate Restructuring, Valuation and Insolvency 

_________ is an offer to the shareholders of a company, who are not promoters of the company or the sellers of the shares under an agreement, to buy their shares in the company at the offered price within the stipulated period of time.

• Friendly takeover
• Hostile takeover
• Buy-back
• Takeover bid

Question No.4

An appeal by aggrieved party against the order refusing any circular under sub-section 238 of the Companies act, 2013 shall be supported with_____ in the Form No. NCLT.6

• Statement by or on behalf of the transferee company
• Circular
• Offer of scheme
• Affidavit

Question No.6

As per Section 24(3) of the IBC (Code), the resolution professional shall give notice of each meeting of the committee of creditors to operational creditors or their representatives if the amount of their aggregate dues is_____ of the debt.

• not less than ten percent
• not more than ten percent
• not less than twenty percent
• not more than twenty percent

Question No.7

Where the Chairperson of the meeting files the report of the meeting called under section 230 of the Companies Act, 2013, the Company shall present the petition to the Tribunal (NCLT) in Form No.______ for the sanction of the scheme

• CAA-4
• CAA-5
• NCLT-3
• NCLT-4

Question No.8

______________ is an investment strategy of using borrowed money, specifically, the use of various financial instruments or borrowed capital to increase the potential return of an investment.

• Rehabilitation finance
• Leverage
• Depository receipt
• Funding through Swaps

Question No.9

Under Section 94 a debtor shall not be eligible to apply for insolvency resolution process if an application regarding insolvency resolution process has been admitted in respect of the debtor during the period of _________the date of submission of the application under this Section

• Six months preceding
• Thirty six months preceding
• Three months preceding
• Twelve months preceding

Question No.10

Which one of the following is not a common reason for voluntary liquidation of companies?

• Not carrying business operations
• Commercially unviable
• Mismanagement
• Running into losses

Question No.11

The_______ is designed to assist States to equip their insolvency laws with a modern legal framework to more effectively address cross-border insolvency proceedings concerning debtors experience severe financial distress or insolvency

• United States Bankruptcy Code
• Insolvency and Bankruptcy Code, 2016 (India)
• United Nations Commission on International Trade Model Law
• Bankruptcy Act, 1966 (Australia)

Question No.12

In case of listed company, public announcement of buy-back shall be made within________

• 10 working days from the date of Board/shareholder’s resolution
• 2 working days from the date of Board/shareholder’s resolution
• 15 working days from the date of Board/shareholder’s resolution
• 30 working days from the date of Board/shareholder’s resolution

Question No.13

_______is a meaningful analysis of the collected information to arrive at some decision about the potential transaction. It is integral to business It is exercised in a simple over-the-counter transaction or a complicated merger and acquisition transaction.

• Future projection
• Due diligence
• Planning
• Budgeting

Question No.14

Debt restructuring mechanisms such as Framework for Revitalizing Distressed Assests, Corporate Debt Restructuring Scheme (CDR) and the Joint Lenders’ Forum (JLF) Framed by______ has been withdrawn vide a circular dated 12 February 2018.

• SBI
• IBBI
• RBI
• SEBI

Question No.15

The Law of Insolvency in India owes its origin to_________

• German’s Law
• Australia’s Law
• USA’s Law
• English Law

Question No.16

According to section 281(1), where the tribunal has made a winding up order or appointed a Company liquidator, such liquidator shall,_______ from the order, submit to the tribunal, a report containing the particulars, like, the nature and details of the assets of the company, amount of capital issued, subscribed and paid-up, guarantees etc.

• within thirty days
• within sixty days
• within ninety days
• within one eighty days

Question No.17

Where a scheme of compromise or arrangement is proposed, the Tribunal (NCLT) may order a meeting of_______

• Board of Directors
• Creditors or members or any class of them
• Shareholders and company
• Debtors or any class of them

Question No.18

The authorized representative shall circulate the minutes of the meeting received by the resolution professional to creditors in a class and announce the voting window_______ before the window opens for voting instructions and keep the voting window open for at least twelve hours.

• At least twenty-four hours
• At least forty-eight hours
• At least Ninety-six hours
• At least Seventy-two hours

Question No.19

______________ is not termed as capital assets as per Section 2(14) of the Income Tax Act, 191

• Property of any kind held by an assessee, connected with his business or profession
• Property of any kind held by an assessee, not connected with his business or profession
• Any securities held by a Foreign Institutional Investor which has invested in such securities in accordance with the regulations made under SEBI Act, 1992
• Stock in trade

Question No.20

Which one is not a part of an External restructuring?

• Restructuring through acquisition of controlling stake
• Restructuring through mergers
• Restructuring through conversion of debt of the corporate debtor into securities of the Corporate debtor
• Restructuring through creation of new departments to serve growing markets or downsizing departments to conserve overheads

Question No.21

An application for merger and amalgamation shall be filed with NCLT by_________

• Only Transferor Company
• Only Transferee Company
• Both Transferor and Transferee Company
• By only target company

Question No.22

The Insolvency and Bankruptcy Code, 2016 is drafted by the_______

• Raghuram Rajan committee
• Bankruptcy Law Reforms committee
• Financial Sector Legislative Reforms Commission
• J J Irani Committee

Question No.23

_________ Merger involves firm engaged in unrelated types of activities.

• Vertical
• Horizontal
• Conglomerate
• Demerger

Question No.24

The Competition Act provides for a deemed clearance if the Competition Commission of India (CCI) does not pass an order_______ from the date of notification.

• Within 180 days
• Within 200 days
• Within 210 days
• Within 365 days

Question No.25

Section 54A of the Insolvency and Bankruptcy Code, 2016, lays down the provisions of a pre-packaged insolvency resolution process MSME’ Threshold Cap in Turnover for Small Enterprise is_____

• 1 crore
• 10 crore
• 50 crore
• 250 crores

Question No.26

Which of the following shall supervise the implementation of the scheme of compromise arrangement after it is sanctioned by the Tribunal?

• Central Government
• Creditors or members or any class of them
• Official Liquidator
• NCLT

Question No.27

Valuation involves financial modeling, in case of merger/ amalgamation, calculating the______ is at the core of the valuation process

• Debt-equity ratio
• Swap Ratio
• EBIT
• Earnings per share

Question No.28

If the Current dividend is Rs. 20, share price is Rs. 150 and annual dividend growth rate is 10 Percent per annum. Calculate the rate of return as per Gordon growth model.

• 14.67 Percent
• 26.67 Percent
• 13.33 Percent
• 10 Percent

Question No.29

Faimess opinion issued by_______ on the scheme of amalgamation shall be filed along with scheme of amalgamation.

• Bankers
• Auditors
• Merchant Banker
• Directors

Question No. 30

Who may order for amalgamation of Companies under section 237 of the Companies Act, 2013, if it is satisfied that such amalgamation is in public interest?

• Registrar of Companies
• NCLT
• Central Government
• Competition Commission of India

Question No.31

_________ gives the holder the right to buy the shares at a predetermined period of time and at a predetermined price under which the price of the underlying stock is expected to rise.

• Derivative
• Call option
• Put-option
• Future contact

Question No.32

As per rule 25 of the Companies (Companies, Arrangements and Amalgamations) Rules, 2016, the notice of the meeting to file members and creditors under section 233 of the Company Act, 2013 shall be accompanied by declaration of solvency in_______

• Form No. CAA 10
• Form No. CAA 11
• Form No. CCA 9
• Form No. CAA 12

Question No.33

Return of buy-back of a listed company shall be filed with_______ within________ days of such completion.

• Registrar, Thirty
• SEBI, Thirty
• Registrar and SEBI; Thirty
• Registrar and SEBI; Fifteen

Question No.34

Section 53 Insolvency and Bankruptcy Code, 2016 deals with distribution of assets in liquidation. In case of liquidation, which one is the correct order for distributing the assets?

• • Fees of insolvency professional
  • Employee wages,
  • Workmen’s dues for preceding 24 months and security creditors.
  • Unsecured creditors

• • Fees of insolvency professional
  • Workmen’s dues for preceding 24 months and security creditors.
  • Shareholders
  • Unsecured creditors

• • Fees of insolvency professional
  • Workmen’s dues for preceding 24 months and security creditors.
  • Employee wages
  • Unsecured creditors

• • Fees of insolvency professional
  • Workmen’s dues for preceding 24 months and security creditors.
  • Shareholders
  • Governments dues

Question No.35

What type of body is Competition Commission of India (CCI)?

• Administrative body
• Judicial body
• Quasi-judicial body
• Tribunal

Question No. 36

Appointment of _________ is mandatory for monitoring the compliance of the securities laws and for redressal of investors grievances in case of IPO by issuer company.

• Merchant Banker
• Registrar to issue
• Underwriters to the issue
• Compliance Officer

Question No.37

The Financial Creditor shall file_______ with NCLT to initiate insolvency proceedings against the Corporate Debtor.

• Form 5
• Form 1
• Form 2
• Form 3

Question No.38

Choose correct options, during the period of moratorium, the debtor shall

• Dispose of or alienate any of his assets;
• Not inform his business partners that he is undergoing a fresh start process,
• Not travel outside India expect with the permission of the Adjudicating Authority
• Act as a director of any company, or directly or indirectly take part in or be concerned in the promotion, formation or management of a company,

Question No.39

Small companies are required to conduct only________ in a year whereas private limited companies not classified as small companies have to conduct four board meetings in a year.

• 1 board meeting
• 2 board meetings
• 3 board meetings
• 4 board meetings

Question No.40

The Manager to the open offer shall file a report with the Board (SEBI) within______ from the expiry of the tendering period.

• Twelve working days
• Fifteen working days
• Twenty one working days
• Twentey six working days

Question No.41

A Practicing Company Secretary can be appointed as a Technical Member of NCLT, provided he has_________ working experience as secretary in whole-time practice.

• 15 Years
• 10 Years
• 20 Years
• 8 Years

Question No.42

“Which Committee proposed significant charges to make the restructuring and liquidation process speedier, efficient and effective and accordingly amendments were made to (RDDBFI) Act, 1993 and (SARFAESI) 2002?

• Narasimham Committee||
• Tiwari Committee
• J JIrani Committee
• Bankruptcy Law Reforms committee (BLRC)

Question No. 43

______________ is not a Debt Recovery Appellate Tribunal (DRAT)

• DRAT Delhi
• DRAT Mumbai
• DRAT Jaipur
• DRAT Allahabad

Question No.44

Which of the following persons/ authorities is not entitled to receive a notice of a meeting convened by the order of NCLT in respect of a scheme of amalgamation?

• Members or a class of members
• Auditor
• Income-Tax Authorities
• Central Government

Question No.45

Capital reduction, in simple words, means________

• Cancellation of paid-up capital
• Cancellation of subscribed capital
• Cancellation of uncalled capital
• Cancellation of authorized capital

Question No.46

Which one of the following is not a current asset?

• Stock of raw material
• Cheques not yet cleared
• Preliminary expenses
• Marketable Shares shown as Stock

Question No.47

Where all financial creditors are related parties of the corporate debtor the committee of creditors shall comprise of________

• All debentureholders
• Insolvency resolution professional and authorized representative
• 18 largest operational creditors by value and one representative each of workman and of employees
• All of the above

Question No.48

A company has authorized and paid-up capital of Rs 1, 00,000. The Company further wants to issue new equity shares for cash through preferential offer. What is the immediate action that the Company shall take w.r.t capital?

• Consolidation of share capital
• Reduction of share capital
• Increase in authorized share capital
• Sub-division of share capital

Question No.49

Who among the following constitutes the committee of creditors under Insolvency and Bankruptcy Code 2016?

• Insolvency professional
• Financial or operational creditor
• Interim resolution professional
• Adjudicating Authority

Question No.50

______ is a merger in which a private company becomes a public company by acquiring it

• Reverse merger
• Conglomeration
• Divestiture
• Demerger

Download : 1-50 MCQ Questions

https://www.mca.gov.in/content/mca/global/en/home.html

1. Is Dir 3 KYC compulsory?

Note: Attention is drawn to provisions of Section 447 read with section 448 and 449 of the Companies Act, 2013 which provide for punishment for false statement / certificate and punishment for false evidence respectively.

Enter Relevant Details in the DIR- 3 KYC Form

PAN Aadhaar Card Link Status : The Income Tax Department said that it will consider the cases where the fee payment and consent for linking have been received, but linking has not been done till 30 June.

The status of challan payment for Aadhaar-PAN linking may be checked in the ‘e-pay tax’ tab of the portal after login, informed the Income Tax Department on 30 June after it noticed PAN holders facing difficulty.

Violations of foreign exchange regulations and smuggling activities have an increasingly deleterious effect on the national economy and serious adverse effect on the security of the State.

THE CONSERVATION OF FOREIGN EXCHANGE AND PREVENTION OF SMUGGLING ACTIVITIES ACT, 1974

• Power to make orders detaining certain persons (Section 3)
• Execution of detention orders (Section 4)
• Power to regulate place and conditions of detention (Section 5)
• Grounds of detention severable (Section 5A)
• Detention orders not to be invalid or inoperative on certain grounds (Section 6)
• Powers in relation to absconding persons (Section 7)
• Advisory Boards (Section 8)
• Cases in which and circumstances under which persons may be detained for periods longer than three months without obtaining the opinion of Advisory Board (Section 9)
• Maximum period of detention (Section 10)
• Extension of period of detention (Section 10A)
• Revocation of detention orders (Section 11)
• Temporary release of persons detained (Section 12)
• Protection of action taken in good faith (Section 13)
  

  Power to make orders detaining certain persons (Section 3)

• The Central Government or the State Government or any officer of the Central Government, not below the rank of a Joint Secretary to that Government, specially empowered for the purposes of this section by that Government, OR
• any officer of a State Government, not below the rank of a Secretary to that Government, specially empowered for the purposes of this section by that Government,
• may, if satisfied, with respect to any person (including a foreigner), that, with a view to preventing him from acting in any manner prejudicial to the conservation or augmentation of foreign exchange or with a view to preventing him from–(i)smuggling goods, or

  (ii) abetting the smuggling of goods, or

  (iii) engaging in transporting or concealing or keeping smuggled goods, or

  (iv) dealing in smuggled goods otherwise than by engaging in transporting or concealing or keeping smuggled goods, or

  (v) harboring persons engaged in smuggling goods or in abetting the smuggling of goods, it is necessary so to do, make an order directing that such person be detained.

  

• When any order of detention is made by a State Government or by an officer empowered by a State Government, the State Government shall, within ten days, forward to the Central Government a report in respect of the order.
• Execution of detention orders (Section 4) A detention order may be executed at any place in India in the manner provided for the execution of warrants of arrest under the Code of Criminal Procedure, 1973.

Power to regulate place and conditions of detention (Section 5)

Every person in respect of whom a detention order has been made shall be liable –

(a)to be detained in such place and under such conditions including conditions as to maintenance, interviews or communication with others, discipline and punishment for breaches of discipline, as the appropriate Government may, by general or special order, specify; and

(b) to be removed from one place of detention to another place of detention, whether within the same State or in another State by order of the appropriate Government:

Grounds of detention severable (Section 5A)

Where a person has been detained in pursuance of an order of detention under section 3(1) which has been made on two or more grounds, such order of detention shall be deemed to have been made separately on each of such grounds and accordingly –

(a)such order shall not be deemed to be invalid or inoperative merely because one or some of the grounds is or are –

(i)vague,

(ii) non-existent,

(iii) not relevant,

(iv) not connected or not proximately connected with such person, or

(v) invalid for any other reason whatsoever, and it is not, therefore, possible to hold that the Government or officer making such order would have been satisfied as provided in sub-section (1) of section 3 with reference to the remaining ground or grounds and made the order of detention;

(b) the Government or officer making the order of detention shall be deemed to have made the order of detention under the said sub-section (1) after being satisfied as provided in that sub-section with reference to the remaining ground or grounds.

Detention orders not to be invalid or inoperative on certain grounds (Section 6)

No detention order shall be invalid or inoperative merely by reason –

(a)that the person to be detained thereunder is outside the limits of the territorial jurisdiction of the Government or the officer making the order of detention, or

(b) that the place of detention of such person is outside the said limits.

Powers in relation to absconding persons (Section 7)

1.If the appropriate Government has reason to believe that a person in respect of whom a detention order has been made has absconded or is concealing himself so that the order cannot be executed, that Government may –

(a)make a report in writing of the fact to a Metropolitan Magistrate or a Magistrate of the first-class having jurisdiction in the place where the said person ordinarily resides; and thereupon the provisions of sections 82, 83, 84 and 85 of the Code of Criminal Procedure, 1973, shall apply in respect of the said person and his property as if the order directing that he be detained were a warrant issued by the Magistrate;

(b) by order notified in the Official Gazette direct the said person to appear before such officer, at such place and within such period as may be specified in the order; and if the said person fails to comply with such direction, he shall, unless he proves that it was not possible for him to comply therewith and that he had, within the period specified in the order, informed the officer mentioned in the order of the reason which rendered compliance therewith impossible and of his whereabouts, be punishable with imprisonment for a term which may extend to one year or with fine or with both.

Advisory Boards (Section 8)

(a) the Central Government and each State Government shall, whenever necessary, constitute one or more Advisory Boards each of which shall consist of a Chairman and two other persons possessing the qualifications specified in article 22(4)(a) of the Constitution;

(b) save as otherwise provided in section 9, the appropriate Government shall, within five weeks from the date of detention of a person under a detention order make a reference in respect thereof to the Advisory Board constituted under clause (a) to enable the Advisory Board to make the report under article 22(4)(a) of the Constitution;

(c) the Advisory Board to which a reference is made under clause (b) shall after considering the reference and the materials placed before it and after calling for such further information as it may deem necessary from the appropriate Government or from any person called for the purpose through the appropriate Government or from the person concerned, and if, in any particular case, it considers it essential so to do or if the person concerned desires to be heard in person, after hearing him in person, prepare its report specifying in a separate paragraph thereof its opinion as to whether or not there is sufficient cause for the detention of the person concerned and submit the same within eleven weeks from the date of detention of the person concerned;

(d) when there is a difference of opinion among the members forming the Advisory Board, the opinion of the majority of such members shall be deemed to be the opinion of the Board;

(e) a person against whom an order of detention has been made under this Act shall not be entitled to appear by any legal practitioner in any matter connected with the reference to the Advisory Board, and the proceedings of the Advisory Board and its report, excepting that part of the report in which the opinion of the Advisory Board is specified, shall be confidential;

(f) in every case where the Advisory Board has reported that there is in its opinion sufficient cause for the detention of a person, the appropriate Government may confirm the detention order and continue the detention of the person concerned for such period as it thinks fit and in every case where the Advisory Board has reported that there is in its opinion no sufficient cause for the detention of the person concerned, the appropriate Government shall revoke the detention order and cause the person to be released forthwith.

Cases in which and circumstances under which persons may be detained for periods longer than three months without obtaining the opinion of Advisory Board (Section 9)

1.Notwithstanding anything contained in this Act, any person (including a foreigner) in respect of whom an order of detention is made under this Act at any time before the 31st day of July, 1999, may be detained without obtaining, in accordance with the provisions of sub-clause (a) of clause (4) of article 22 of the Constitution, the opinion of an Advisory Board for a period longer than three months but not exceeding six months from the date of his detention, where the order of detention has been made against such person with a view to preventing him from smuggling goods or abetting the smuggling of goods or engaging in transporting or concealing or keeping smuggled goods and the Central Government or any officer of the Central Government, not below the rank of an Additional Secretary to that Government, specially empowered for the purposes of this section by that Government, is satisfied that such person –

(a)smuggles or is likely to smuggle goods into, out of or through any area highly vulnerable to smuggling; or

(b) abets or is likely to abet the smuggling of goods into, out of or through any area highly vulnerable to smuggling; or

(c) engages or is likely to engage in transporting or concealing or keeping smuggled goods in any area highly vulnerable to smuggling, and makes a declaration to that effect within five weeks of the detention of such person.

Maximum period of detention (Section 10)

The maximum period for which any person may be detained in pursuance of any detention order to which the provisions of section 9 do not apply and which has been confirmed under clause (f) of section 8 shall be a period of one year from the date of detention or the specified period, whichever period expires later and the maximum period for which any person may be detained in pursuance of any detention order to which the provisions of section 9 apply and which has been confirmed under clause (f) of section 8 read with sub-section (2) of section 9 shall be a period of two years from the date of detention or the specified period, whichever period expires later: Provided that nothing contained in this section shall affect the power of the appropriate Government in either case to revoke or modify the detention order at any earlier time.

Revocation of detention orders (Section 11)

1.Without prejudice to the provisions of section 21 of the General Clauses Act, 1897 (10 of 1897), a detention order may, at any time, be revoked or modified– (1a) notwithstanding that the order has been made by an officer of a State Government, by that State Government or by the Central Government; (1b) notwithstanding that the order has been made by an officer of the Central Government or by a State Government, by the Central Government.

2. The revocation of a detention order shall not bar the making of another detention order under section 3 against the same person.

Temporary release of persons detained (Section 12)

1.The Central Government may, at any time, direct that any person detained in pursuance of a detention order made by that Government or an officer subordinate to that Government or by a State Government or by an officer subordinate to a State Government, may be released for any specified period either without conditions or upon such conditions specified in the direction as that person accepts, and may, at any time, cancel his release.

(1a) A State Government may, at any time, direct that any person detained in pursuance of a detention order made by that Government or by an officer subordinate to that Government may be released for any specified period either without conditions or upon such conditions specified in the direction as that person accepts, and may, at any time, cancel his release.

2. In directing the release of any person under sub-section (1) or sub-section (1A), the Government directing the release may require him to enter into a bond with sureties for the due observance of the conditions specified in the direction.
3. Any person released under sub-section (1) or sub-section (1A) shall surrender himself at the time and place, and to the authority, specified in the order directing his release or cancelling his release, as the case may be.
4. If any person fails without sufficient cause to surrender himself in the manner specified in sub-section (3), he shall be punishable with imprisonment for a term which may extend to two years, or with fine, or with both.
5. If any person released under sub-section (1) or sub-section (1A) fails to fulfil any of the conditions imposed upon him under the said sub-section or in the bond entered into by him, the bond shall be declared to be forfeited and any person bound thereby shall be liable to pay the penalty thereof.
6. Notwithstanding anything contained in any other law and save as otherwise provided in this section, no person against whom a detention order made under this Act is in force shall be released whether on bail or bail bond or otherwise.

Special provisions for dealing with emergency (Section 12A)

1. Notwithstanding anything contained in this Act or any rules of natural justice, the provisions of this section shall have effect during the period of operation of the Proclamation of Emergency issued under clause (1) of article 352 of the Constitution on the 3rd day of December, 1971, or the Proclamation of Emergency issued under that clause on the 25th day of June, 1975, or a period of twenty-four months] from the 25th day of June, 1975, whichever period is the shortest.
2. When making an order of detention under this Act against any person after the commencement of the Conservation of Foreign Exchange and Prevention of Smuggling Activities (Amendment) Act, 1975 (35 of 1975), the Central Government or the State Government or, as the case may be, the officer making the order of detention shall consider whether the detention of such person under this Act is necessary for dealing effectively with the emergency in respect of which the Proclamations referred to in sub-section (1) have been issued (hereafter in this section referred to as the emergency) and if, on such consideration, the Central Government or the State Government or, as the case may be, the officer is satisfied that it is necessary to detain such person for effectively dealing with the emergency, that Government or officer may make a declaration to that effect and communicate a copy of the declaration to the person concerned; Provided that where such declaration is made by an officer, it shall be reviewed by the appropriate Government within fifteen days from the date of making of the declaration and such declaration shall cease to have effect unless it is confirmed by that Government, after such review, within the said period of fifteen days.
3. The question whether the detention of any person in respect of whom a declaration has been made under sub-section (2) continues to be necessary for effectively dealing with the emergency shall be reconsidered by the appropriate Government within four months from the date of such declaration and thereafter at intervals not exceeding four months, and if, on such reconsideration, it appears to the appropriate Government that the detention of the person is no longer necessary for effectively dealing with the emergency, the Government may revoke the declaration.
4. In making any consideration, review or reconsideration under sub-section (2) or (3), the appropriate Government or officer may, if such Government or officer considers it to be against the public interest to do otherwise, act on the basis of the information and materials in its or his possession without disclosing the facts or giving an opportunity of making a representation to the person concerned.
5. It shall not be necessary to disclose to any person detained under a detention order to which the provisions of sub-section (2) apply, the grounds on which the order has been made during the period the declaration made in respect of such person under that sub section is in force, and, accordingly, such period shall not be taken into account for the purposes of sub-section (3) of section 3.
6. In the case of every person detained under a detention order to which the provisions of sub-section (2) apply, being a person in respect of whom a declaration has been made thereunder, the period during which such declaration is in force shall not be taken into account for the purpose of computing – (i) The periods specified in clauses (b) and (c) of section 8; (ii) The periods of ‘one year’ and ‘five weeks’ specified in sub section (1)the period of one year specified in sub section (2) (i) and the period of “six months” specified in sub section (3) , of section 9

Protection of action taken in good faith

Section 13 provides that No suit or other legal proceeding shall lie against the Central Government or a State Government, and no suit, prosecution or other legal proceedings shall lie against any person, for anything in good faith done or intended to be done in pursuance of this Act.

14. Repeal.

The Maintenance of Internal Security (Amendment) Ordinance, 1974 (11 of 1974) shall, on the commencement of this Act, stand repealed and accordingly the amendments made in the Maintenance of Internal Security Act, 1971 (26 of 1971), by the said Ordinance shall, on such commencement, cease to have effect.

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Adjudication, Prosecutions, Offences and Penalties under SCRA, 1956, the object of Securities Contracts (Regulation) Act, 1956 is to provide for the regulation of stock exchanges, and of transactions in securities dealt on them with a view to prevent undesirable speculation. The Act also seeks to regulate the buying and selling of securities outside the limits of stock exchanges, through the licensing of security dealers.

Penalties

The Act prescribes various penalties against persons who might be found guilty of offences under section 23 the Act.

These offences are listed below –

Section 23.

1. Any person who –

(a) without reasonable excuse (the burden of proving which shall be on him) fails to comply with any requisition made under sub-section (4) of section 6; or

(b) enters into any contract in contravention of any of the provisions contained in section 13 or section 16; or

(c) contravenes the provisions contained in section 17 or section 17A, or section 19; or

(d) enters into any contract in derivative in contravention of section 18A or the rules made under section 30;

(e) owns or keeps a place other than that of a recognized stock exchange which is used for the purpose of entering into or performing any contracts in contravention of any of the provisions of this Act and knowingly permits such place to be used for such purposes; or

(f) manages, controls, or assists in keeping any place other than that of a recognized stock exchange which is used for the purpose of entering into or performing any contracts in contravention of any of the provisions of this Act or at which contracts are recorded or adjusted or rights or liabilities arising out of contracts are adjusted, regulated or enforced in any manner whatsoever; or

(g) not being a member of a recognized stock exchange or his agent authorized as such under the rules or bye-laws of such stock exchange or not being a dealer in securities licensed under section 17 willfully represents to or induces any person to believe that contracts can be entered into or performed under this Act through him; or

(h) not being a member of a recognized stock exchange or his agent authorized as such under the rules or bye-laws of such stock exchange or not being a dealer in securities licensed under section 17, canvasses, advertises or touts in any manner either for himself or on behalf of any other persons for any business connected with contracts in contravention of any of the provisions of this Act; or

(i) joins, gathers or assists in gathering at any place other than the place of business specified in the byelaws of a recognized stock exchange any person or persons for making bids or offers or for entering into or performing any contracts in contravention of any of the provisions of this Act; shall, without prejudice to any award of penalty by the Adjudicating Officer or the Securities and Exchange Board of India under this Act, on conviction, be punishable with imprisonment for a term which may extend to ten years or with fine, which may extend to twenty-five crore rupees, or with both.

2. Any person who enters into any contract in contravention of the provisions contained in section 15 or who fails to comply with the provisions of section 21 or section 21A or with the orders of or section 22 or with the orders of the Securities Appellate Tribunal shall, without prejudice to any award of penalty by the Adjudicating Officer under this Act, on conviction, be punishable with imprisonment for a term which may extend to ten years or with fine, which may extend to Rs.25 crore, or with both.

Penalty for failure to furnish information, return, etc. [Section 23A]

Any person, who is required under this Act or any rules made thereunder, –

(a) to furnish any information, document, books, returns or report to the recognized stock exchange or to the Board, fails to furnish the same within the time specified therefor in the listing agreement or conditions or byelaws of the recognized stock exchange or the Act or rules made thereunder, or who furnishes false, incorrect or incomplete information, document, books, return or report, shall be liable to a penalty which shall not be less than Rs.1 lakh but which may extend to Rs.1 lakh for each day during which such failure continues subject to a maximum of Rs.1 crore for each such failure;

(b) to maintain books of account or records, as per the listing agreement or conditions, or bye-laws of a recognized stock exchange, fails to maintain the same, shall be liable to a penalty which shall not be less than Rs.1 lakh but which may extend to Rs.1 lakh for each day during which such failure continues subject to a maximum of Rs.1 crore.

Penalty for failure by any person to enter into an agreement with clients. [Section 23B]

If any person, who is required under this Act or any bye-laws of a recognized stock exchange made thereunder, to enter into an agreement with his client, fails to enter into such an agreement, he shall be liable to a penalty which shall not be less than Rs.1 lakh but which may extend to Rs.1 lakh for each day during which such failure continues subject to a maximum of Rs.1 crore for every such failure.

Penalty for failure to redress investors’ grievances [Section 23C]

If any stock broker or sub-broker or a company whose securities are listed or proposed to be listed in a recognized stock exchange, after having been called upon by the Securities and Exchange Board of India or a recognized stock exchange in writing, to redress the grievances of the investors, fails to redress such grievances within the time stipulated by the Securities and Exchange Board of India or a recognized stock exchange, he or it shall be liable to a penalty which shall not be less than Rs.1 lakh but which may extend to Rs.1 lakh for each day during which such failure continues subject to a maximum of Rs.1 crore.

Penalty for failure to segregate securities or moneys of client or clients [Section 23D]

If any person, who is registered under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) as a stock broker or sub-broker, fails to segregate securities or moneys of the client or clients or uses the securities or moneys of a client or clients for self or for any other client, he shall be liable to a penalty which shall not be less than Rs.1 lakh but which may extend to Rs.1 crore

Penalty for failure to comply with provision of listing conditions or delisting conditions or grounds [Section 23E]

If a company or any person managing collective investment scheme or mutual fund or real estate investment trust or infrastructure investment trust or alternative investment fund, fails to comply with the listing conditions or delisting conditions or grounds or commits a breach thereof, it or he shall be liable to a penalty which shall not be less than Rs.5 lakh but which may extend to Rs.25 crore.

Penalty for excess dematerialisation or delivery of unlisted securities [Section 23F]

If any issuer dematerialises securities more than the issued securities of a company or delivers in the stock exchanges the securities which are not listed in the recognized stock exchange or delivers securities where no trading permission has been given by the recognized stock exchange, he shall be liable to a penalty which shall not be less than Rs.5 lakh but which may extend to Rs.25 crore.

Penalty for failure to furnish periodical returns, etc. [Section 23G]

If a recognized stock exchange fails or neglects to furnish periodical returns or furnishes false, incorrect or incomplete periodical returns to the Securities and Exchange Board of India or fails or neglects to make or amend its rules or bye-laws as directed by the Securities and Exchange Board of India or fails to comply with directions issued by the Securities and Exchange Board of India, such recognized stock exchange shall be liable to a penalty which shall not be less than Rs.5 lakh but which may extend to Rs.25 crore.

Penalty for failure to conduct business in accordance with rules, etc. [Section 23GA]

Where a stock exchange or a clearing corporation fails to conduct its business with its members or any issuer or its agent or any person associated with the securities markets in accordance with the rules or regulations made by the Securities and Exchange Board of India and the directions issued by it under this Act, the stock exchange or the clearing corporations, as the case may be, shall be liable to penalty which shall not be less than Rs.5 crore but which may extend to Rs.25 crore or three times the amount of gains made out of such failure, whichever is higher.

Penalty for contravention where no separate penalty has been provided. [Section 23H]

Whoever fails to comply with any provision of this Act, the rules or articles or bye-laws or the regulations of the recognized stock exchange or directions issued by the Securities and Exchange Board of India for which no separate penalty has been provided, shall be liable to a penalty which shall not be less than Rs.1 lakh but which may extend to Rs.1 crore.

Power to adjudicate. [Section 23-I]

1. For the purpose of adjudging under sections 23A, 23B, 23C, 23D, 23E, 23F, 23G and 23H, the Securities and Exchange Board of India may appoint any officer not below the rank of a Division Chief of the Securities and Exchange Board of India to be an adjudicating officer for holding an inquiry in the prescribed manner after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty.
2. While holding an inquiry, the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document, which in the opinion of the adjudicating officer, may be useful for or relevant to the subject-matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of any of the sections specified in subsection (1), he may impose such penalty as he thinks fit in accordance with the provisions of any of those sections.
3. The Board may call for and examine the record of any proceedings under this section and if it considers that the order passed by the adjudicating officer is erroneous to the extent it is not in the interests of the securities market, it may, after making or causing to be made such inquiry as it deems necessary, pass an order enhancing the quantum of penalty, if the circumstances of the case so justify

Settlement of administrative and civil proceedings. [Section 23JA]

1. Notwithstanding anything contained in any other law for the time being in force, any person, against whom any proceedings have been initiated or may be initiated under section 12A or section 23-I, may file an application in writing to the Board proposing for settlement of the proceedings initiated or to be initiated for the alleged defaults.

2. The Board may, after taking into consideration the nature, gravity and impact of defaults, agree to the proposal for settlement, on payment of such sum by the defaulter or on such other terms as may be determined by the Board in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992.

3. For the purposes of settlement under this section, the procedure as specified by the Board under the Securities and Exchange Board of India Act, 1992 shall apply.

4. No appeal shall lie under section 23L against any order passed by the Board or the adjudicating officer, as the case may be, under this section.

5. All settlement amounts, excluding the disgorgement amount and legal costs, realized under this Act shall be credited to the Consolidated Fund of India.

Recovery of amounts. [Section 23JB]

1. If a person fails to pay the penalty imposed under this Act or fails to comply with a direction of disgorgement order issued under section 12A or fails to pay any fees due to the Board, the Recovery Officer may draw up under his signature a statement in the specified form specifying the amount due from the person (such statement being hereafter in this Chapter referred to as certificate) and shall proceed to recover from such person the amount specified in the certificate by one or more of the following modes, namely:–

(a) attachment and sale of the person’s movable property;

(b) attachment of the person’s bank accounts;

(c) attachment and sale of the person’s immovable property;

(d) arrest of the person and his detention in prison;

(e) appointing a receiver for the management of the person’s movable and immovable properties, and for this purpose, the provisions of sections 220 to 227, 228A, 229, 232, the Second and Third Schedules to the Income-tax Act, 1961 and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, in so far as may be, apply with necessary modifications as if the said provisions and the rules thereunder were the provisions of this Act and referred to the amount due under this Act instead of to income-tax under the Income-tax Act, 1961.

2. The Recovery Officer shall be empowered to seek the assistance of the local district administration while exercising the powers under sub-section (1).
3. Notwithstanding anything contained in any other law for the time being in force, the recovery of amounts by a Recovery Officer under sub-section (1), pursuant to non-compliance with any direction issued by the Board under section 12A, shall have precedence over any other claim against such person.
4. For the purposes of sub-sections (1), (2) and (3), the expression “Recovery Officer” means any officer of the Board who may be authorized, by general or special order in writing to exercise the powers of a Recovery Officer.

Appeal to Securities Appellate Tribunal [Section 23L]

1. Any person aggrieved, by the order or decision of the recognized stock exchange or the adjudicating officer or any order made by the Securities and Exchange Board of India under or sub-section (3) of section 23-I, may prefer an appeal before the Securities Appellate Tribunal and the provisions of sections 22B, 22C, 22D and 22E of this Act, shall apply, as far as may be, to such appeals.
2. Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order or decision is received by the appellant and it shall be in such form and be accompanied by such fee as may be prescribed:                Provided that the Securities Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period.

3. On receipt of an appeal under sub-section (1), the Securities Appellate Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against.
4. The Securities Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the concerned adjudicating officer.
5. The appeal filed before the Securities Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavor shall be made by it to dispose of the appeal finally within six months from the date of receipt of the appeal.

Offences [Section 23M]

1.Without prejudice to any award of penalty by the adjudicating officer or the Securities and Exchange Board of India] under this Act, if any person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of any rules or regulations or bye-laws made thereunder, for which no punishment is provided elsewhere in this Act, he shall be punishable with imprisonment for a term which may extend to ten years, or with fine, which may extend to Rs.25 crore rupees or with both.

2. If any person fails to pay the penalty imposed by the adjudicating officer or the Securities and Exchange Board of India] or fails to comply with the direction or order, he shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to ten years, or with fine, which may extend to Rs.25 crore, or with both.

Power to grant immunity [Section 23-O]

1. The Central Government may, on recommendation by the Securities and Exchange Board of India, if the Central Government is satisfied, that any person, who is alleged to have violated any of the provisions of this Act or the rules or the regulations made thereunder, has made a full and true disclosure in respect of alleged violation, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act, or the rules or the regulations made thereunder or also from the imposition of any penalty under this Act with respect to the alleged violation:

Provided that no such immunity shall be granted by the Central Government in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of application for grant of such immunity: Provided further that the recommendation of the Securities and Exchange Board of India under this sub-section shall not be binding upon the Central Government.

2. An immunity granted to a person under sub-section (1) may, at any time, be withdrawn by the Central Government, if it is satisfied that such person had, in the course of the proceedings, not complied with the condition on which the immunity was granted or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the contravention and shall also become liable to the imposition of any penalty under this Act to which such person would have been liable, had not such immunity been granted.

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