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Section 16

Power of Central Government to Issue Directions

The Securities and Exchange Board of India Act, 1992
(1) Without prejudice to the foregoing provisions of this Act, the Board shall, in exercise of its powers or the performance of its functions under 1 [this Act or the Depositories Act, 1996 (22 of 1996)], be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time:

Provided that the Board shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section.

(2) The decision of the Central Government whether a question is one of policy or not shall be final.




1. Subs. by Act 22 of 1996, s. 30 and the Schedule, for this Act (w.e.f. 20-9-1995).