SEBI: Introduction, Objectives and Functions

1. Introduction

Securities and Exchange Board of India which is often referred as SEBI is the key regulator of securities market in India. It was established in 1988 by the Government of India and is established and incorporated through section 3 of SEBI Act, 1992 ( http://www.sebi.gov.in/acts/act15ac.pdf ). Controller of Capital Issues was the regulatory authority before SEBI came into existence which derived its authority from the Capital Issues (Control) Act, 1947. It’s headquarter is situated at Plot No.C4-A,'G' Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051. 

SEBI is managed by its board members and the management of the board is defined in Section 4 of the act, which consists of following:

a) a Chairman who shall be appointed by the Central Government. 

b) two members from Ministry of Central Government dealing with Finance (and administration of the Companies Act, 1956). 

c) one member from The Reserve Bank of India.

d) five other members appointed by central government, out of them at least three shall be whole time members.

The current Chairman of SEBI is Upendra Kumar Sinha who was appointed on 18th Feb, 2011 replacing C. B. Bhave. 

2. Objectives of SEBI

The preamble of SEBI Act, 1992 states its objectives as; 

“An Act to provide for the establishment of a Board to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental thereto.” 

The primary objective of SEBI is to promote healthy and orderly growth of the securities market and secure investor protection. However, other objectives of SEBI can be categorized as:-

2.1. Ensuring fair practices in securities market.

2.2. Promoting efficient, competitive and professional services by merchant bankers, brokers, advisors, underwriters, port folio managers and other intermediaries.

2.3. Formulate rules and regulations for the securities market in India.

2.4. Settlement of investor’s grievances in securities market.

3. Functions of SEBI

SEBI is the Nodal agency for protecting the interests of an investor in Indian Market through various methods as prescribed in Section 11 of SEBI Act, 1992 which describes powers and functions of the board. However, the functions of SEBI can be generalized asunder:-

3.1. Regulatory Functions

3.1.1. Inspecting books and accounts of financial intermediaries. 

3.1.2. Monitor and check share trading in securities market.

3.1.3. Registration and regulation of brokers, advisors, underwriters, merchant bankers, portfolio managers and other intermediaries.

3.1.4. Registration and regulation of Mutual Funds, Venture Capital Funds and Collective Investment Schemes.

3.1.5. Prohibiting unfair, fraudulent and illegal practices in securities market.

3.1.6. Prohibiting insider trading through Stock Watch System and by imposing penalties.

3.1.7. Regulating substantial acquisition of shares and takeovers.  

3.2. Development Functions

3.2.1. Promotion of fair practices in securities market.

3.2.2. Promoting Investor education and professional training of intermediaries.

3.2.3. Promotion of self regulatory organizations.

3.2.4. Publishing informative research useful to all participants.

As for now Indian securities market is considered as a weak market because the participants of stock market aren’t aware of the required essential knowledge; therefore to counter this issue SEBI has become a vigilant watchdog for securing the interests of the investors on one side and promoting information related to securities market on the other hand. 

4. References:-

4.1. http://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_India

4.2. http://www.studymode.com/essays/Functions-Of-Sebi-200714.html

4.3. http://finance.indiamart.com/india_business_information/sebi_introduction.html

4.4. http://www.scribd.com/doc/35095126/SEBI-Role-and-Functions

4.5. http://www.slideshare.net/AnkurYadav2/role-and-functions-of-sebi

4.6. http://wiki.answers.com/Q/What_is_the_role_and_functions_of_sebi

4.7. http://www.slideshare.net/599suraj/sebi-ppt

Our country has always boasted of her rich heritage and culture. Culture specifically includes our ‘values’ and ‘customs’. Post-modern Indian youth generally and Gen-Y in particular have always championed the assumption that India as a country has survived various social and cultural catastrophies because we proudly follow our value-system. 

The question is how far we practice what we preach or boast. We need to understand that the so called values of our society are basically set of fashions of society that existed in a bygone time-frame. Although you can follow some of them but others just don’t fit in the present society. Some of our values and customs at times become so suffocating that it becomes tough to survive. We can discuss few illustrations.

Our values talk about ‘Decency’. Now comically in our society a couple sitting affectionately in a lonely park can be indecent for so called champions of morality but a man pissing on a wall in broad day light is perfectly right. Hindu right wing organizations are much against the celebration of ‘Valentines Day’ but for them if people misbehave with girls on the occasion of ‘Holi’, then it is ‘bura naa mano Holi hai’. Decency herein is just conveniently interpreted. Not only Hindus, it seems that certain extreemist Muslims of India find it more appropriate to copy their Talibani counterparts instead of their progressive Turkish or Iranian brothers.

Again in our society ‘Disrespect’ has various interpretations. Marrying a girl or opting for a profession against ones' parents wish means disrespecting them. On the other hand watching them lash out at our old grandparents is perfectly normal, a part of ‘beta woh ab irritating ho gayein hain isliye humain unse space chahiye’ ideology. We Indians are also God-fearing people. We love to spend money in the name of god but then we also know how to earn more by immoral means. Accumulation of Black money or earning through unfair means is part of our ‘sab chalta hai yaar’ attitude, in our country.

Even our generation is full of pseudo western thought preachers who wear Gucci's and Armanis, carrying cock-tails and Blackberry’s, but when it comes to social opinions they view that a prostitute has virtually got no right against rape while homosexuals are deviants who corrupt society. They are the ones who shout dialogues of ‘Rang de basanti’ and sing ‘Sadda Haq’ but have not time to even go and cast vote. On a larger canvas we still live in a society where we proudly boast of ‘Manusmriti and Neeti ke Dohe’ but shy away from acknowledging ‘Vatsayaan or Khajurao architecture’ as part of India culture. We proudly say that we are modern and believe in unity of the country but still we are plagued with evils like ‘Honor Killing’.

Political parties are more interested in organising ‘Rath yatras’ and erecting marble statues while failing to save both ‘tiger’ and ‘girl child’. The judiciary is not immune from this hypocrisy. Rule of Law suddenly becomes very important for Mr. Kasab but definitely not a treat for commoners, of fame such as Rudul Shah case, who languish in jails as under-trials. Dr. Binayak Sen is declared a terrorist while it took active media participation for convicting Manu Sharma, as the state failed to prosecute him. 

The issue is not what you are preaching but it involves ‘how far you practice what you preach?’

-Vaibhav Dixit

                                                                                                                                                                                                        -Ryan Gerard Wilson

When the Supreme Court rejected a high Court order asking Times Now channel to deposit Rs 100 crore as a pre-condition for hearing its appeal, an entire industry was left stunned. The case involved Justice P B Sawant mistakenly as being involved in the Ghaziabad district court Provident Fund scam because of the similarity of names with another judge. The concerned channel even claimed that the error was corrected within 15 seconds and for five days a public apology was issued to the wronged judge.

This moves opens up a plethora of jurisprudential debates namely weather or not negligence ought to be s strict liability offence or not and the application of the doctrine of proportionality. Surprisingly one of the greatest critics of the Indian media, Justice Markandey Katju who often accuses the media of being anti-people admitted that such a move ought to be reconsidered. Recently Justice Ruma Paul, the former judge of the Supreme Court listed the seven deadly sins which plagued the higher judiciary. The question which faces us now is whether an eight deadly sin can be added to the list. The eight sin being that of over-reaction.

Justice Hidayatullah once noted in the Naresh Mairajkar case[AIR 1967 SC 1 (29)] that Judges can be said to be entirely out of the reach of fundamental rights. Justice Mathew in a Keshavanand Bharti v State of Kerala[(1973) 4 SCC 225] noted that the judicial process is a state action and the judiciary is bound to apply the directive principles in making a judgment. One of the sharpest criticisms of the courts pre-condition is that it was made neglecting the sociological impact on Indian society. The media has been or cynically in the words of Justice Katju has always claimed to been an agent for social change. There industry is in a state of disbelief as the ones who have claimed to amplify juducal reach from the Supreme Court to the common man have been denied those very rights they fight for others. The logical consequence of such a pre-condition would be an obvious denial of a review.

The PCI chief has been campaigning to gain political consensus so that he may be given “teeth” to “correct” the media. Renowned journalist of NDTV, Prannoy Roy has stressed the need for strong defamation laws and had even gone on to say “We live in a punishment-free world as the media”. This move by the supreme court smacks of low sociological foresight.

Justice Katju often says that certain persons form the media haven’t studied law, economics and sociology. Such a move by the court is being vehemently criticized from the legal aspect with respect to overt punishment for an honest mistake followed by a swift apology, from the economic aspect with respect to the incapability of Times Now to pay the amount and the sociological aspect wherein the interaction between the three state organs, the media and the people has been jolted for one of the most frivolous reasons. Justice J S Verma, the former Chief Justice of India wished that Justice Sawant had ignored the lapse for the very reason that his integrity was such that none would have taken it seriously and even if it were for a moment causative of damage to reputation the five day long apology issued would have mitigated the same. Such a measure would in the eyes of many perhaps have been justified if there was an iota of malice. The question raised by this matter is not a comforting one- What can one do if there is a judicial denial of justice?

What happens when a person in India considers starting his own company?- He gets puzzled at the first by the do’s and don’ts and all the procedural intricacies irritate him a lot. My post will answer questions that answer how to open a company in India. It will describe approximately all the required rules and procedures.

These are the basic steps involved in starting a business in Maharashtra. However in some states or cities one may have to go through some additional processes that one will have to find out.

Step 1: Obtain DIN (Director Identification Number) 

Method: Can be done online from the website of Ministry of Corporate Affairs government of India.

Website: http://www.mca.gov.in/

Time Taken: 1 Day

Cost:  INR 100

Process: The provisional DIN will be issued immediately. The applicant will have to get the application form printed and signed and sent for approval to the ministry by courier along with the proof of identity and address.

 Step 2:  Obtain DSC (Digital Signature Certificate)

Method: Can be done online from private agencies authorized by Ministry of Corporate Affairs government of India.

Time Taken: 4 Days

Cost: INR 1500

Process:  To use the new electronic filing system under MCA 21, the applicant must obtain a Class-II Digital Signature Certificate. The digital signature certificate can be obtained from one of six private agencies authorized by MCA 21 such as Tata Consultancy Services. Company directors submit the prescribed application form along with proof of identity and address. Each agency has its own fee structure, ranging from INR 400 to INR 2650.

Step 3: Reserve the company name online with the registrar of companies.(ROC)

Time:  1 Day

Cost: 500

Process: The applicant can check the availability of desired company name online (website: http://www.mca.gov.in/). ROC suggests to provide them at least 6 company names. Then they are checked by the ROC staff for any similarities with all other names in India. Once when a company name gets confirmed it is displayed on the MCA website. 

Step 4: Stamp the company documents at the state treasury (State) or authorized bank (Private)

Time Taken: 1 Day

Cost: Depends on the state. (Rate of stamp duty varies from state to state)

Process: The applicant will have to submit the documents accompanied by unsigned copies of the Memorandum and Articles of Association and the payment receipt. Applicant will have to ensure that the document submitted to Superintendent of Stamps or to the authorized back for stamping are unsigned and that no promoter or subscriber has written anything on it.

Step 5: Getting the certificate of incorporation from the Registrar of Companies.

Time Taken: 5 days.

Process: This process requires filing the forms from the website of Ministry of Company Affairs along with the documents, scanned copies of the consent of the directors. This can be done online and offline.

Step 6: Make a seal

Time Taken:  1 Day

Cost:  INR 350 (Cost depends on the number of seals required and the time period for delivery)

Process: For the company to be incorporated making a seal is not a legal requirement.

Step 7: Obtain a PAN (Permanent Account Number) from an authorized organization.

Cost:  INR 67

Time Taken: 7 days

Process:  An applicant will have to reach any authorized franchise or agent appointed by NSDL    (National Securities Depository Limited) or the UTI (Unit Trust of India) Investor Services Ltd. as outsourced by Income Tax Department. Applicant’s physical presence is important for document verification.

Step 8: Obtain a Tax Account Number (TAN)

Cost: 57

Time Taken: 7 days

Process:  The application for allotment of a TAN must be filed using Form 49B and submitted at any TIN Facilitation Center authorized to receive e-TDS returns. The list of TIN Facilitation Centers can be found at www.incometaxindia.gov.in. The hard copy of the application must be physically filed with the NSDL.

Step 9: Register with the Office of Inspector. Shops and Establishment Act (State/ Municipal)

Time Taken: 2 Days

Cost:  INR 6000

Process: A statement containing the employer-"s and manager-"s names and the establishment’s name (if any), postal address, and category must be sent to the local shop inspector with the applicable fees.  

Step 10: Register for Value Added Tax (VAT) at the State Commercial Tax Office

Cost: INR 5100

Time Taken: 12 Days

Process: The authorized representative signing the application must be available at the Sales-Tax Office on the day of application verification. The applicant goes to the Sales-Tax Office and up to the registration counter. The clerk at the counter verifies that the applicant has all the required documents and gives the applicant a token (waiting number). After a short wait, the applicant-"s number is called and the applicant approaches the desk of a sales-tax officer.

Step 11: Register for Profession at Profession Tax Office.

Time Taken: 2 Days

Cost: Nothing

Process: According to section 5 of the Profession Tax Act, every employer (not being an officer of the government) is liable to taxation and shall obtain a certificate of registration from the prescribed authority. The company is required to apply to the registering authority using Form 1.

    

Step 12: Register with Employees’ Provident Fund Organization (National)

Time Taken: 12 Days

Cost: Nothing

Process: The Employees Provident Funds and Miscellaneous Provisions Act (1952) applies to an establishment, employing 20 or more persons and engaged in any of the 183 industries and classes of business establishments, throughout India excluding the State of Jammu and Kashmir.

The applicant fills in an application and is then allotted a social security number. The Provident Fund registration focuses on delinquent reporting, underreporting, or non-reporting of workforce size. Provident Fund registration is optional if the workforce size is not more than 20. The employer is required to provide necessary information to the concerned regional Provident Fund Organization (EPFO) in the prescribed manner for allotment of Establishment Code Number. No separate registration is required for the employees.

Nevertheless, all eligible employees are required to become members of the Fund and individual account number is allotted by the employer in the prescribed manner. As per an internal circular, the code number is to be allotted within 3 days of submission, if the application is complete in all respects. However, in many cases applicants have received the intimation letter with the code number in 12 to 15 days. An online application facility is not provided so far.

Step 13: Register for medical insurance at the regional office of the Employees’ State Insurance Corporation

Cost: Nothing

Time Taken: 9 Days

Process: As per the Employees’ State Insurance (General), Form 01 must be submitted by the employer for registration. It takes 3 days to a week for the Employer Code Number to be issued. The-" "intimation letter""- containing the Code Number is mailed to the employer and that takes an additional couple of days.

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- Shared by Shreya Singh

What happens when you destroy everything you ever wished for with your very own hands? What do you do then?  What happens precisely one day after your life is  attacked?  I, like most of the people over-ridden by guilt and despair go into mindless “pashtyataap” and in the world of law-students it means joining an internship a day after your exams get over . an internship where you are certainly not invited and got in because the advocate was returning a favour to your uncle who got you in. He takes me in and now my uncle has to admit the advocate’s nephew in his medical college. It’s a circle of favors…our whole society is entwined in this circle its more like the barbed wires used as a security boundary   in old safer times when thieves weren’t so smart and cattle wasn’t so hungry. Pricky.

          So, I entered another room of the MDS( male dominated society). It was a whole new room for me. Fresh after one year of Law School I could with pride and dignity declare openly that I had absolutely no clue what a profession of law was all about. Being from a family of Engineers and Businessmen and the first years being taught nothing except new ways and resources of CCP and Ten Ways to Waste your time while under the pretence of Preparing for Grand Intra, i was like a blank cheque eager to be filled and cashed.

         Everybody there was middle-aged age, so needless to say, I had nothing in common with them except the fact that we all faced the same doom of being in the profession of law in a country with over-riding ideals and under-payed jobs, needless to say a very conflicting combination.

         For the first few days they refused to acknowledge my presence. sometimes trying too hard in the process, I would drop a huge file and my pen would fly in air for quite a few dramatic moments before landing  on someone or something and they wouldn’t even look up from their work. It was a bit too much. I added to my misery by offering to intern both in the court and the chamber and that’s when things started looking better.

         The only way to be taken seriously at work is to be serious about work. So, I would never be late for work,  read all the important files in chamber for the next day’s court  session. Ask questions –most importantly, and listen carefully to whatever was being told to me even if it was for just 2 minutes in the whole day. I would go and ask—something, anything but commute regularly. Soon after 10-12 days the associates would themselves come to me and tell me about the various judgments being delivered in court while they were standing outside waiting for their case, at the chamber they would give me work, from trivial things like numbering the cases and annexures to taking notes and forming notes for the cases, it all happened slowly. Advocates would give me research work and till now I have never been able to actually help them in any solid way but yes I did learn many things all the times I failed to help.

Also, a very important thing in this profession is the ego. I have till date not met a single advocate, judge, teacher, law student, anyone who if good at what he/she does is also humble about it. Experience in the field of law is something so bragged about that sometimes it felt nauseous to be in the presence of such “eminent beings” . There were some rather “unique” people I encountered during this one month I had spent in the Raw-Law world. People like senior advocate gulabbo, the jumpy judge, the bench- judge who snored and stared, the same guy who came for three different cases in two days, the seventy six year old daughter whose siblings declared her an outsider after their ninety year old father died, just for property, the fifty-something man who cried in full public view when he lost everything he had earned in life just because the advocate did not turn up, the clerk of forty two years age who was finishing third year of LL.B because he still dared to dream, the associate-father to three college going kids- who even after so many years chose to remain an associate because he was scared he could not make it on his own. These and many more…which judge uses natural justice , which written law and most importantly I saw justice being delivered in one case and the better case winning , even when guilty, in another. I saw all that we read in those big fat books which take four pages to explain what coud have been explained in four lines. It was eye-opening  and exciting on one side and some times it made me promise myself to never enter the world of litigation.

   But whether you like it or not, litigation has this certain charisma attached to it for some people. The courtrooms are small in the U.P. HC and lawyers too many, you can actually smell 10 different kinds of sweat at the same time and you have to wear cloaks and blazers even in the blazing May heat.  It is uncertain, risky, needs immense confidence and skill, and it is the perfect example of the survival instinct we associate with human beings. Standing and faking sincerity in front of a person who has already faked it for decades and knows it all requires skill. Convincing them and proving the right- wrong and most importantly the right-right is a twisted and immensely difficult task and your bread and butter depends on how good a liar you are and how good are your instincts. How quick can you think? How much of your literature do you remember? How can you fathom the loophole in a case and satisfy your client and most importantly make him believe that you can help him and save him. We get three weeks to prepare for a moot and solve and crack the case given to us. There in the chamber a prospective client would come sit in front of you tell you his case and ask then and there whether there is hope for you to help him out and you don’t get to open a book and refer to sections  and get any help whatsoever -- you have to listen, think and catch the broken link and work on it and convince your client that they have a case . All in the moment-- one miss and 100% guarantee that the client will not come back to you and tell ten other people that you are no good. You lose ten clients when you fail once and when you succeed once that client will stay with you forever and also recommend you . You need courage and confidence and lots of hard work to make it on your own in this black and white world. Because the judge will incinerate your ego,  the client will doubt your credibility and your colleagues will snatch away your clients right under your nose.

This,  as we were told before we joined Law school, was the last option for students graduating from the elite National Law Universities went for. Initially I thought it was because the other jobs paid more but I think the real reason is because surviving and winning in this field needs a lot of gut and has immense risks and we Indians refrain from. You need to struggle and work hard every day  but on the brighter side-it would get easier as you gain experience. If you survived the first few years and get recognized then you have sealed a fortune for yourself ,because,  breaking laws is second nature to human beings and they all want justice and they are ready to pay for it. A vast number of the best and well known people in this world have been and will be Lawyers.

I had never bothered about policemen and their ways before. Surely we criticize them, we know they are not exactly the supercops we see in the movies, but since it does not affecting us, its just talk. We've heard stories of how indifferently the policemen treat the aam janta, but I came face to face with the indifference and apathy with my first experience with filing an FIR (First Information Report).

A friend of mine lost his cellphone and was required to file an FIR in order to get his SIM card blocked from mobile companies. Now, in India, once a mobile is lost, or any electronic item for that matter, is lost, it is gone for good. Surveillance or any other similar technical tactic used by Police in order to recover these items is virtually unheard of, especially here in Uttar Pradesh. The Police doesn't bother to find it, and being a tolerant nation that we are, generally the owner (now ex-owner) considers it lost and moves on. The maximum to be done is to get an FIR lodged and block the SIM to prevent any misuse of the phone. This is the maximum we expect out of our policemen- get us our FIR on time! Later I discovered, even this bare minimum task is very hard for our policemen to keep up with.

The event took place at Thana Talkatora , Rajajipuram, Lucknow. My friend n myself, entered the Police Station, partly in anticipation, partly in fear. This was our first visit to any Police Station. We enter a room and I found it to be exactly in consonance with the typical police station I had imagined. Two policemen eating gutka slouched on their chairs, chewing paan in a manner that somehow reminded me of a buffalo chewing the cud. One look at the corner of the wall, and it was clear where the pan masala went after they were through with it.

 I asked him, trying to be polite, "Sir, my friend lost his phone and now he wants to file an FIR regarding this issue." For the reaction (or the lack of it) that I received, I could have been speaking to the pan-stained wall behind him. He pretended I didn't exist. I repeated my sentence, now in an increased volume. He glared at me as if I had committed some criminal offence, almost as if I had stolen my friend's cellphone. He finally replied in a slighting tone, "Pay me 100 bucks which will be used in making the affidavit and come the day after tomorrow to take the FIR copy or get it done from court yourself and give it to me." Now, I am a law student alright, but I wasn't aware of the intricate legal procedures yet, at the end of a year. I asked him weather this affidavit from court is necessary. He replied in a the typical policemen tone, "What do you think I am doing here? Just get it done and submit it here." I am a teenager, and not a very aggressive one, at that. His tone threatened me. Assuming that further curiosity may grant me some physical pain, I decided to give up. I was feeling helpless. It moved me. I felt a strong surge of anger at this part red-tapism and part indifference. So much for a simple FIR?

We came outside, slightly irked and did what we do whenever we are rendered helpless- we criticized. We wondered whether it is only the UP Police which is so easy-going about its duties or was it the same all over the country. It was sad for our nation as a whole. Now my friend had an  uncle who  was a policeman in UP in a different district. Moved by the mistreatment, I suggested him to ring him up and ask for suggestions. He called him up and reported to him the ill-behaviour we had just received. His uncle asked us to give him the mobile phone number of the Station Incharge, which is given outside every police station and asked to wait there. We followed the instructions and stood there waiting in anticipation for what was going to follow.

 We didn't have wait for long. After about 2 minutes, a very changed policemen came to greet us -  "Ohh!! Why didn't you tell us before that your uncle is a policeman." We were invited into his office, offered tea while the same man who dismissed us offhand wrote the application himself. All he required was the IMEI no. and address and  the copy of the FIR was handed to us within seconds. He smiled his sycophantic smile and left us with this parting advice, "If you have any policeman in your family, whenever you are coming to a police station for  any reason, its your responsibility to give your 'proper introduction' first. As we left the police station, my friend was rather pleased with what connections could do and I was stunned.

Later that night, in a pensive mood, when I replayed the incident in my head, I was slightly disturbed. Is this the way they are supposed to behave with the 'ordinary' man? We rely on them considering them to be people who enforce the law - who protect the citizens and have the duty to redress our day to day problems. Does a person who does not have 'proper' introduction to give not have the right to get his problem solved? This was just a little incident for an FIR for a misplaced SIM card. A merely procedural formality. I shuddered to think of what this inactivity would do to victims of crime who knocked their doors for justice. The problem suddenly felt really big, and I begun to realize the seriousness of the stories I had heard. After seeing this I feel a great sense of  pity on the society and this state.

It is said that youth is naive and is not affected by inhibitions. For five students from Dr. Ram Manohar Lohiya National Law University, Lucknow, working on rural development was not merely a project. It was more than a trip to the other side of India where they live and where rests our future. It was the overwhelming need to participate in the development of the rural society, the self-gratifying need to do good-selflessly, as was envisioned by the Father of the Nation when he described the role youth should play in society, that made them visit a village in Hardoi (Gramsabha Gondarao Block Ahirori) to observe the situation of education, health, infrastructure and legal awareness in rural India.
  A visit of such kind was unprecedented especially in the said village, and the students infused fear in the hearts of a sleeping administration. The purpose of their visit earned them the support and goodwill of the School Headmaster.

A detailed study gave them the following basic information regarding the status of primary education. There were two schools-a primary school and a junior school, running adjacent to each other.

 a). The Primary School had no infrastructure.
 b). The students found the primary school children studying under the tree.
 c). The Junior School had little infrastructure.
 d). Small rooms with suffocating atmosphere and no electricity.
 e). The lavatories were in a dilapidated condition.
And that was all the infrastructure that the children have for their education which is guaranteed in the Constitution of India, as a fundamental right of every child in India.
 
Subsequent interaction with a teacher provided us with valuable insights regarding the working of the education machinery in villages. As per the guidelines, no more than 40 students are to be assigned to one teacher. However, both the schools together had around 500 students and just 3 teachers. However, things did not end here. Regular classes were held for around 75-100 days a year. Even these days, their Government duties eclipse their teaching duties. A regular outsourcing of man-power from the school administration for Government duties and various other statutory services in other projects like Polio Booths, census and counting, election duties etc. make it difficult for the children to enjoy the minimal quality requirements of education.
 Children are the future of a nation. They are the most vulnerable, yet strongest part of a nation. For an emerging and developing country like India, development of underprivileged children holds the key to the progress of the nation itself. Education of children-urban or rural is the key whether we are addressing healthcare, poverty, population control, and unemployment or human rights issues.

 It is ironic for a country like India to be in such a deteriorating condition in the field of education considering the fact that the founding fathers of our country had advocated education as the most essential step to building a strong nation. For a country looked up for its intelligentsia, the classrooms like the ones witnessed by the students go a long way in describing the importance we give to the Temples of Knowledge.

The situation is bad yet we still have the capacity to recover from the loss. To expect instantaneous change would be foolish, however, to hope for betterment is what we move forward with. We move forward with the belief that a small and selfless act for change can bring a revolution and that is exactly what is mirrored in the students.

This Article describes , How to Draft a legislation.

Bills and Statutory instruments (subsidiary legislation) are drafted in response to the requirements of a government department. There are some bills which are simple and can be drafted in a very short time on the other hand there are bills which involve major legislative areas and take months or even years to draft.

Here is a classification of contents commonly found in Indian Legislations.

1.      Object and Reason Clause.

    This clause specifies the basic purpose behind the enactment of the legislature. In case laws while applying the ‘golden rule’ or the ‘mischief’ rule of interpretation of statues, the object & reason clause is a veritable goldmine of knowledge. It specifies the need and importance for and the goals to be achieved through the enactment of the legislature. It embodies the intention of the legislator while framing the legislation, and thus aids in interpretation in case of any ambiguity.

It is a clause, the reading of which, gives one a general idea of what a piece of legislation intends to achieve. It specifies the objectives and the reasons behind those objectives.

2.      Short Title

 It is the formal name given to a legislation.

 e. g .  “The Advocates Act, 1961”

Its ideally suggestive of the contents and the area the legislation deals with.

 “Short titles are generally made up of just a few words that describe in broad terms the area of law being changed or the thing affected, followed by the word “Act” and then the year in which the legislation is formally enacted.”

 – From Wikipedia

 Draft legislation (bills) also uses short titles, but substitutes the word “Bill” for “Act”.

3.      No. of Act

 “(Act no. 25 of 1961)”    as stated in “The Advocates Act, 1961 “means that The Advocates Act was 25^th act to be passed in the year 1961.

 Note:- The year of enactment is, at times, also mentioned in the Long Title.

    4.      Sources of Legislation

    The acts, taking cognizance of which, the legislation has been       passed.

    In normal terms source of legislation means the relevant               authority which inspired the drafting of the act.

e.g.
Source of Legislation for The Advocates Act, 1961
 “ The Legal Practitioners Act, 1879 (18 of 1879), the Bombay Pleaders Act, 1920 (17 of 1920) and the Indian Bar Councils Act, 1926 (38 of 1926) “ 

Thus a legislation may be drafted integrating different legislations on that topic, or may be passed to ratify an international convention, or as a result of recommendations from the Law Commission, eminent jurists and scholars, case laws or through public opinion.

5.      Preamble

The preamble highlights the purpose, object and intent of the Act. It is an important tool of interpretation, and has been called the “key to the mind of the legislator”.  These days a preamble is generally omitted, but it has been recommended for

a)       Legislations with constitutional importance i.e. when the subject matter is constitutional in nature.

b)      Legislations ratifying an international convention.

c)      Legislations where local or customary laws have been given preference.

6.      Long Title

A long title defines the purpose, and the main principle of the legislation in a single line. It gives a bird’s eye view of the subject matter of the legislation.

e.g
 As mentioned in Advocates Act
“An act to amend and conslidate the law relating to legal practitioner and to provide for the constitution of Bar Councils and an All India Bar.”

7.      Extent Clause

It specifies the territorial mandate of the legislation concerned, For example the Indian Contract Act is applicable to the whole of India except the state of Jammu and Kashmir. Different legislatures have different extent clauses depending upon their nature and objectives.

8.      Application Clause

This clause answers the question ‘To whom it may apply’. For example in the Hindu marriage Act the word ‘Hindu’ applies to ‘Jains’, ‘Buddhists’ and ‘Sikhs’ as well.

9.      Commencement Clause

It specifies on what date and how the Act comes into effect.

a.      Indicate Effect

Indicates that the act shall come into force when it receives assent of the authority, the President.

b.      On a particular date

When the legislators have premeditated the date for the commencement of the legislation, they indicate the same in the commencement clause.

c.       By a notification

In many cases it is mentioned that the Act will become operative from the day it is notified in the Official Gazette.

10.  Definition Clause

It defines the terms used commonly throughout the legislature and also specifies the extent to which people or acts come under the ambit of a particular definition. It either restricts or enlarges the literal meaning of a word to suit the purpose of the act, normally in general cases section 2 or 3 of legislatures contain the definition clause.

11.  Substantive Clause

 It is the main body of the legislation. The bulk of the operational clauses of the act are contained in it.

12.  Miscellaneous Clauses

The above clauses are an essential part of all the legislations in general, but there are certain clauses which serve a specific purpose and may not be applicable to all legislations. Some of them are as follows:

a.      Non Obstante Clause:

Sometimes it becomes necessary to provide that a particular Act should operate notwithstanding anything contained in any other law which is contrary to the provisions of this Act.  In other words, in cases where it is not possible to examine all relevant laws to decide which provision should be overruled and to what extent, the convenient device is adopted whereby the particular law is given overriding effect.

e.g

The Advocates Act, 1961

“58AG. [(Note:- Section 58AG ins. by Act 38 of 1977, sec.7) Special provisions in relation to article clerks- Notwithstanding anything contained in this Act, every person who immediately before the 31st day of December, 1976 has commenced his articleship and passed the Preliminary examination, for the purpose of enrolment as an attorney of the High Court at Calcutta in accordance with rules made under sub section (2) of section 34………..”

b.      Protection of Action taken in good faith:

 This clause gives protection to authorities during the course of performance of their duties.

 e.g 

Protection given to police while they are on duty.

c.       Rule making power clause:

It delegates authority to executive body, already existing or which is established by the Act, the power to form certain rules regarding procedure and function of the body in the jurisdiction of the body, to carry out the mandate given in the Act.

e.g 

Under RTI Central Information Commission has been formed and given certain rule making powers.

d.      Saving Clause:

This clause states that the present legislation is not in derogation i.e. doesn’t override or overrule past legislations, it merely supplements them.


- Piyush Raj Verma