Individual liability and the role of compliance officers

By Shruti Rajan and Garima Joshi, Cyril Amarchand Mangaldas

When it comes to affixing responsibility for contraventions by companies, certain individuals are held liable under most Indian laws. The Companies Act, 2013, also imposes liability on an “officer who is in default”. In these cases, apart from directors and other employees, such individuals may include companies’ compliance officers.

Shruti RajanPartnerCyril Amarchand Mangaldas
Shruti Rajan
Cyril Amarchand Mangaldas

The responsibility of compliance officers, specifically from the standpoint of securities market laws and regulatory actions initiated by the Securities and Exchange Board of India (SEBI), is examined below.

Under the SEBI Act, 1992, and the Securities Contracts (Regulation) Act, 1956, SEBI has notified rules, regulations and circulars dealing with the manner in which listed companies and securities market intermediaries are required to carry out their activities.

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Cyril Amarchand Mangaldas is India’s largest full-service law firm. Shruti Rajan is a partner and Garima Joshi is a principal associate at the firm.

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