JUDGMENT

Jagdish Singh Khehar, J.

Criminal Appeal nos. 827-830 of 2012

1. Sub-Section (1B) was inserted into Section 12 of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as, the SEBI Act), on 25.1.1995.

Section 12(1B) is extracted hereunder:-

“12. Registration of stock-brokers, sub-brokers, share transfer agents, etc. –

(1B) No person shall sponsor or cause to be sponsored or carry on or cause to be carried on any venture capital funds or collective investment scheme including mutual funds, unless he obtains a certificate of registration from the Board in accordance with the regulations:

Provided that any person sponsoring or cause to be sponsored, carrying or causing to be carried on any venture capital funds or collective investment scheme operating in the securities market immediately before the commencement of the Securities Laws (Amendment) Act, 1995 for which no certificate of registration was required prior to such commencement, may continue to operate till such time regulations are made under clause (d) of sub-section (2) of section 30.

Explanation.– For the removal of doubts, it is hereby declared that, for the purposes of this section, a coll