Till now it was not evident whether the Securities and Exchange Board of India (Sebi) had powers to issue guidelines or directions relating to the issue of shares, listings and so on.
Even if it had the powers, it was not clear whether the manner in which it was using it was in proper legal form. The recently-amended Sebi Act specifically empowers Sebi to issue these guidelines and directions. However, the wording of the Act still leaves some doubts. For example, it is not clear whether several of the guidelines issued by Sebi would have legal force.
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