The Department of Economic Affairs under the Ministry of Finance has notified the Special Court under Security Laws in Delhi vide notification S.O. 2436(E) dated 5th June 2023.
The Court of Additional Sessions Judge-03, South-West District, Dwarka, Delhi, is designated as Special Court under Section 26A of the Securities and Exchange Board of India Act, 1992, Section 26A of the Securities Contracts (Regulation) Act, 1956, and Section 22C of the Depositories Act, 1996 by the Central Government, with the concurrence of the Chief Justice of the Hon’ble High Court of Delhi.
The Section 26A of the Securities and Exchange Board of India Act, 1992 states about the establishment of Special Courts. According to the Section, the Central Government may establish or designate as many Special Courts as may be required by notification in order to provide a prompt trial for offences under this Act.
Further, the Section 22C of the Depositories Act, 1996 and Section 26A of the Securities Contracts (Regulation) Act, 1956 also states about the establishment of the special courts by the central government when necessary.
The Special courts are created with the aim of expediting the adjudication process, ensuring specialized expertise, and addressing the unique requirements of certain types of cases. Special Courts may have jurisdiction over a particular subject matter or may be designated to deal with cases involving specific laws or statutes.
The Securities Contracts (Regulation) Act (SCRA) seeks to protect investors by discouraging unethical behaviour in the securities industry. It regulates various aspects of securities contracts, including their formation, terms, and conditions. It establishes rules for the trading, settlement, and transfer of securities.
The notification is applicable only to the exercise of the abovementioned act in jurisdiction of the Union territory of Delhi.
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