CAPITAL
ISSUES (CONTROL) REPEAL ACT, 1992 [REPEALED]
Preamble 1 - CAPITAL ISSUES (CONTROL) REPEAL ACT ,1992
CAPITAL
ISSUES (CONTROL) REPEAL ACT ,1992
[Act, No. 26 of 1992]
[18th August , 1992]
PREAMBLE
An Act to
repeal the Capital Issues (Control) Act, 1947.
BE it enacted by Parliament
in the Forty-third Year of the Republic of India as follows:
Section 1 - Short title and commencement
(1)
This Act may be called the Capital Issues (Control) Repeal Act,
1992.
(2)
It shall be deemed to have come into force on the 29th day of May,
1992.
Section 2 - Definition
In this Act,
"appointed day" means the 29th day of May, 1992.
Section 3 - Repeal of Act 29 of 1947
On the appointed day, the
Capital Issues (Control) Act, 1947 shall stand repealed.
Section 4 - Repeal and saving
(1) Capital
Issues (Control) Repeal Ordinance, 1992 (Ord.9 of 1992) is hereby repealed.
(2) Notwithstanding
such repeal, anything done or any action taken under the Ordinance so repealed
shall be deemed to have been done or taken under this Act
Statement
of Objects and Reasons - CAPITAL ISSUES (CONTROL) REPEAL ACT, 1992
STATEMENT OF OBJECTS AND REASONS
1.
The Capital Issues (Control) Act, 1947 required consent of
Government for companies to raise capital, whether from its own shareholders
through rights issues or from the public. In the light of the policy statement
made on 24th July, 1991 liberalising control over industry, Government's
control over issues of capital and on pricing of the capital issues for
domestic companies became irrelevant. An announcement to this effect was made
in the Budget Speech for 1992-93. Since then, the Securities and Exchange Board
of India (SEBI) has also been given necessary statutory powers through the
Securities and Exchange Board of India Act, 1992 (15 of 1992) and entrusted
with the task of ensuring disclosures and investor protection.
2.
As Parliament was not in session and as it became necessary in the
context of the emerging industrial and financial scenario to repeal urgently
the Capital Issues (Control) Act, 1947, the President promulgated the Capital
Issues (Control) Repeal Ordinance, 1992 (9 of 1992) on the 29th May, 1992.
3.
The Bill seeks to replace the said Ordinance.