Vidhi Codex

The Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992

The Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992

Corporate199219 sections

The Special Court Act of 1992 was enacted to address massive financial irregularities involving the illegal diversion of funds from banks by brokers. Specifically, it regulates offences related to securities transactions committed between April 1991 and June 1992. The law strictly applies to brokers, bank employees, and other individuals publicly notified by a government-appointed Custodian. This Custodian holds the power to instantly freeze their financial assets and cancel fraudulent contracts. Ultimately, this legislation matters because it establishes a dedicated court for speedy trials to recover the stolen money, punish guilty parties, and restore public confidence in India's major financial institutions.

Start reading →Read full ActSections
  1. 1. Short title and commencement.
  2. 2. Definitions.
  3. 3. Appointment and functions of Custodian.
  4. 4. Contracts entered into fraudulently may be cancelled.
  5. 5. Establishment of Special Court.
  6. 5A. Distribution of cases amongst Judges of Special Court.
  7. 6. Cognizance of cases by Special Court.
  8. 7. Jurisdiction of Special Court.
  9. 8. Jurisdiction of Special Court as to joint trials.
  10. 9. Procedure and powers of Special Court.
  11. 9A. Jurisdiction, powers, authority and procedure of Special Court
  12. 9B. Powers of the Special Court in arbitration matters
  13. 10. Appeal
  14. 11. Discharge of liabilities
  15. 11A. Power to punish for contempt
  16. 12. Protection of action taken in good faith
  17. 13. Act to have overriding effect
  18. 14. Power to make rules
  19. 15. Repeal and savings

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