SECURITIES APPELLATE TRIBUNAL

INVESTMENT LAW PROJECT

SUBMITTED TO: SUBMITTED BY:MR. VIKAS GUPTA ANGNA DEWAN

(INVESTMENT LAW PROF.) A3221510056

BBA LLB (H)

2011-201ACKNOWLEDGEMENT

I would like to express profound gratitude to Mr. Vikas Gupta, for his invaluable support, encouragement, supervision and useful suggestions throughout this research work. His moral support and continuous guidance enabled me to complete my work successfully. His intellectual thrust and blessings motivated me to work rigorously on this study. In fact this study could not have seen the light of the day if his contribution had not been available. Angna Dewan

A3221510056

BBA LLB (H)

2011-2016CONTENTSSECURITIES APPELLATE TRIBUNAL

ESTABLISHMENT

COMPOSITION

QUALIFICATION FOR APPOINTMENT

PROCEDURE FOR FILING APPEALS

FEES

APPEAL TO SECURITIES APPELLATEPOWERS TO SECURITIES APPELLATE TRIBUNALDELISTING SECURITIES

APPEAL TO SUPREME COURT

POWERS AND FUNCTIONS OF REGISTRAR

CASE

CONCLUSION

BIBLIOGRAPHYSecurities Appellate TribunalSecurities Appellate Tribunal is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India or by an adjudicating officer under the Act and to exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force. SAT (Securities Appellate Tribunals) is the appellate authority for capital market decisions taken by the Securities & Exchange Board of India.

Establishment of Securities Appellate Tribunals.-

(1) The Central Government shall, by notification, establish one or more Appellate Tribunals to be known as the Securities Appellate Tribunal to exercise the jurisdiction, powers and authority conferred on such Tribunal by or under this Act [or any other law for the time being in force.](2) The Central Government shall also specify in the notification referred to in sub-section (1) the matters and places in relation to which the Securities Appellate Tribunal may exercise jurisdiction.Composition of Securities Appellate Tribunal.

A Securities Appellate Tribunal shall consist of a Presiding Officer and two other Members, to be appointed, by notification, by the Central Government:

Provided that the Securities Appellate Tribunal, consisting of one person only, established before the commencement of the Securities and Exchange Board of India (Amendment) Act, 2002, shall continue to exercise the jurisdiction, powers and authority conferred on it by or under this Act or any other law for the time being in force till two other Members are appointed under this section.

Qualification for appointment as Presiding Officer or Member of the Securities Appellate Tribunal.(1) A person shall not be qualified for appointment as the Presiding Officer of a Securities Appellate Tribunal unless he is a sitting or retired Judge of the Supreme Court or a sitting or retired Chief Justice of a High Court:

Provided that the Presiding Officer of the Securities Appellate Tribunal shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.

(2) A person shall not be qualified for appointment as Member of a Securities Appellate Tribunal unless he is a person of ability, integrity and standing who has shown capacity in dealing with problems relating to securities market and has qualification and experience of corporate law, securities laws, finance, economics or accountancy:

Provided that a member of the Board or any person holding a post oat senior management level equivalent to Executive Director in the Board shall not be appointed as Presiding Officer or Member of a Securities Appellate Tribunal during his service or tenure as such with the Board or within two years from the date on which he ceases to hold office as such in the Board.Tenure of office of Presiding Officer and other Members of Securities Appellate Tribunal.The Presiding Officer and every other Member of a Securities Appellate Tribunal shall hold office for a terms of five years from the date on which he enters upon his office and shall be eligible for re-appointment:

Provided that no person shall hold office as the Presiding Officer of the Securities Appellate Tribunal after he has attained the age of sixty-eight years:

Provided further that no person shall hold office as Member of the Securities Appellate Tribunal after he has attained the age of sixty-two years.

Salary and allowances and other terms and conditions of service of Presiding OfficersSection 15 O provides that salary and allowances payable to and the other terms and conditions of service including pension, gratuity and other retirement benefits of the Presiding Officer and other Members of a Securities Appellate Tribunal shall be such as may be prescribed.

However neither the salary and allowances nor the other terms and conditions of service of the [Presiding Officer and other Members of a Securities Appellate Tribunal] shall be varied to their disadvantage after appointment.

Filling up of Vacancies

If, for reason other than temporary absence, any vacancy occurs in the office of the Presiding Officer or any other Member of a Securities Appellate Tribunal, then the Central Government shall appoint another person to fill the vacancy and the proceedings may be continued before the Securities Appellate Tribunal from the stage at which the vacancy is filled.

Resignation and RemovalSection 15Q (1) provides that the Presiding Officer or any other Member of a Securities Appellate Tribunal may, by notice in writing addressed to the Central Government, resign his office: The Presiding Officer or any other Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office, until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.

Section 15Q (2) provides that the Presiding Officer shall not be removed from his office except by an order by the Central Government on the ground of proved misbehavior or incapacity after an inquiry made by a Judge of the Supreme Court, in which the Presiding Officer or any other Member] concerned has been informed of the charges against him and given a reasonable opportunity of being heard in respect of these charges.

Section 15Q (3) The Central Government may, by rules, regulate the procedure for the investigation of misbehavior or incapacity of the Presiding Officer or any other Member.

Procedure for filing appeals

(1) A memorandum of appeal shall be presented in the form annexed to these rules by the Appellant either in person to the Registrar of the Appellate Tribunal within whose jurisdiction his case falls or shall be sent by registered post addressed to such Registrar.

(2) Where the appellant is company a memorandum of appeal may be preferred, -

(a) By one or more legal practitioners authorized by such company; or

(b) By any of the officers of such company to act as Presenting Officers and every person so authorized may present the appeal before the Appellate Tribunal.

(3) Where the appellant is other than a company he may prefer an appeal in person or by his agent or by a duly authorized legal practitioner.

(4) An appeal sent by post under sub-rule (1) shall be deemed to have been presented to the Registrar on the day on which it is received in the office of the Registrar.

(5) The appeal under sub-rule (1) shall be presented in four sets in a Paper Book along with an empty file size envelope bearing full address of the respondent and where the number of respondents are more than one, then sufficient number of extra paper books together with empty file size envelope bearing full addresses of each respondent shall be furnished by the appellant.

Presentation and scrutiny of memorandum of appeal

6. (1) The Registrar shall endorse on every appeal the date on which it is presented under that rule and shall sign endorsement.

(2) If, on scrutiny, the appeal is found to be in order, it shall be duly registered and given a serial number.

(3) If an appeal on scrutiny is found to be defective and the defect noticed is formal in nature, the Registrar may allow the appellant to rectify the same in his presence and if the said defect is not formal in nature, the Registrar, may allow the appellant such time to rectify the defect as he may deem fit.

(4) If the concerned appellant fails to rectify the defect within the time allowed in sub-rule (3), the Registrar may by order and for reasons to be recorded in writing, decline to register such memorandum of appeal.

(5) An appeal against the order of the Registrar under sub-rule (4) shall be made within fifteen days of making of such order to the Presiding Officer concerned in his chamber, whose decision thereon shall be final.

Place of filing memorandum of appeal

7. The memorandum of appeal shall be filed by the appellant with the Registrar of the Appellate Tribunal having jurisdiction in the matter.

Fee 8. (1) Every memorandum of appeal under section 15T of the Act shall be accompanied with a fee provided in sub-rule (2) and such fee may be remitted either in the form of crossed demand draft drawn on a nationalized bank in favor of the Registrar and payable at the station where the Registrar's office is situated or remitted through a crossed Indian Postal Order drawn in favor of the Registrar and payable in Central Post Office of the Station where the Appellate Tribunal is located.

(2) The amount of fee payable in respect of appeal under section 15T shall be as follows:-

TABLE

AMOUNT OF PENALTY IMPOSED AMOUNT OF FEES PAYABLE

1. Less than rupees ten thousand; Rs.500

2. Rupees ten thousand or more but less than one lakhs; Rs.1200

3. Rupees one lakh or more. Rs.1200 plus Rs.1000 for every additional one lakh of penalty.

Deposit of amount of penalty

9. Where an appeal is preferred by a person under section 15T of the Act, such appeal shall not be entertained by the Appellate Tribunal unless such person has deposited with the Appellate Tribunal the amount of penalty imposed by the Adjudicating Officers.

Provided that the Appellate Tribunal may, for reasons to be recorded in writing, waive or reduce the amount to be deposited with the Appellate Tribunal.

Contents of memorandum of appeal

10. (1) Every memorandum of appeal filed under rule 5 shall set forth concisely under distinct heads, the grounds of such appeal without any argument or narrative, and such grounds shall be numbered consecutively and shall be typed in double line space on one side of the paper.

(2) It shall not be necessary to present separate memorandum of appeal to seek interim order or direction if in the memorandum of appeal, the same is prayed for.

Documents to accompany memorandum of appeal

11. (1) Every memorandum of appeal shall be triplicate and shall be accompanied with two copies (at least one of which shall be certified copy) of the order of Division Chief under Chapter VI A of the Act against which the appeal is filed.

(2) Where the parties to the appeal are being represented by an agent, documents authorizing him to act as such agent shall also be appended to the appeals.

Provided that where an appeal is filed by a local practitioner, it shall be accompanied by a duly executed Vakalatnama.

(3) Where a company is being represented by any of its Officers to act as Presenting Officer before the Appellate Tribunal, the document authorizing him to act as Presenting Officer shall be appended to the memorandum of appeal.

Plural remedies

12. A memorandum of appeal shall not seek relief or reliefs based on more than a single cause of action in one single memorandum of appeal unless the reliefs prayed for are consequential to one another. Endorsing copy of appeal to the Board

13. A copy of the memorandum of appeal and paper book shall be served on the Board, as soon as they are filed, by the Registrar by registered post.

Filing of reply to the appeal and other documents by the respondent or the Board

14. (1) The respondent or the Board may file four complete sets containing the reply to the appeal along with documents in a paper book form with the registry within one month of the service of the notice on him of the filing of the memorandum of appeal.

(2) The respondent or the Board shall also endorse one copy of the reply to the appeal along with documents as mentioned in sub-rule (1) to the appellant.

(3) The Appellate Tribunal may, in its discretion on application by the respondent or the Board, allow the filing of reply referred to in sub-rule (1), after the expiry of the period referred to therein.

Date and place of hearing to be notified

15. The Appellate Tribunal shall notify the parties the date and place of hearing of the appeal in such a manner as the Presiding Officer may by general or special order direct.

Appeal to the Securities Appellate Tribunal.

Section 15(T) provides an opportunity to a person aggrieved,-

(a)by an order of the Board made, on and after the commencement of the Securities Laws (Second Amendment) Act, 1999, under this Act, or the rules or regulations made thereunder; or

(b)By an order made by an adjudicating officer under this Act, may prefer an appeal to a Securities Appellate Tribunal having jurisdiction in the matter.

15(T) (2) No appeal shall lie to the Securities Appellate Tribunal from an order made__

(a) By the Board on and after the commencement of the Securities Laws (Second Amendment) Act, 1999;

(b) By an adjudicating officer, with the consent of the parties.

(3) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which[a copy of the order made by the Board or the adjudicating officer, as the case may be,] is received by him and it shall be in such form and be accompanied by such fee as may be prescribed :

Provided that the Securities Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period.

(4) On receipt of an appeal under sub-section (1), the Securities Appellate Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against.

(5) The Securities Appellate Tribunal shall send a copy of every order made by it to the [Board, the parties] to the appeal and to the concerned Adjudicating Officer.

(6) The appeal filed before the Securities Appellate Tribunal under sub-section (1) Shall be dealt with by it as expeditiously as possible andendeavorshall be made by it to dispose of the appeal finally within six months from the date of receipt of the appeal.

Powers of Securities Appellate Tribunal:

Section 15U (1) provides that the Securities Appellate Tribunal shall not be bound by procedure laid down by CPC, 1908, but shall be guided by the principles of natural justice, and subject to the provisions of this Act and of any rules, the SAT shall have powers to regulate their own procedure including the placing at which they shall have their sittings.

Section 15U(2) provides that the Securities Appellate Tribunal shall have, for the purpose of discharging their functions under this Act, the same powers as are vested in a civil court under the Code of

Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:

(a) Summoning and enforcing the attendance of any person and examining him on oath;

(b) Requiring the discovery and production of documents;

(c) Receiving evidence on affidavits;

(d) Issuing commissions for the examination of witnesses or documents;

(e) Reviewing its decisions;

(f) Dismissing an application for default or deciding it ex parte;

(g) Setting aside any order of dismissal of any application for default or any order passed by it ex parte; and

(h) Any other matter which may be prescribed.

Section 15U (3) provides that every proceeding before the Securities Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code (45 of 1860) and the Securities Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

Civil court not to have jurisdiction.

No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Securities Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.

Delisting of securities

(1) A recognized stock exchange may delist the securities, after recording the reasons therefore, from any recognized stock exchange on any of the ground or grounds as may be prescribed under this Act:

(2) A listed company or an aggrieved investor may file an appeal before the Securities Appellate Tribunal against the decision of the recognized stock exchange delisting the securities within fifteen days from the date of the decision of the recognized stock exchange delisting the securities and the provisions of sections 22B to 22E of this Act, shall apply, as far as may be, to such appeals:

Provided that the Securities Appellate Tribunal may, if it is satisfied that the company was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding one month.

Right of appeal against refusal of stock exchanges to list securities of public companies.

Where a recognized stock exchange acting in pursuance of any power given to it by its bye-laws, refuses to list the securities of any public company [or collective investment scheme], the company[or scheme] shall be entitled to be furnished with reasons for such refusal, and may,

(a) Within fifteen days from the date on which the reasons for such refusal are furnished to it, or

(b) where the stock exchange has omitted or failed to dispose of, within the time specified in sub-section (1) of section 73 of the Companies Act, 1956(hereafter in this section referred to as the specified time), the application for permission for the shares or debentures to be dealt with on the stock exchange, within fifteen days from the date of expiry of the specified time or within such further period, not exceeding one month, as the Central Government may, on

sufficient cause being shown, allow, appeal to the Central Government against such refusal, omission or failure, as the case may be, and thereupon the Central Government may, after giving the stock exchange an opportunity of being heard,

(i) Vary or set aside the decision of the stock exchange, or

(ii) Where the stock exchange has omitted or failed to dispose of the application within the specified time, grant or refuse the permission, and where the Central Government sets aside the decision of the recognized stock exchange or grants the permission, the stock exchange shall act in conformity with the orders of the Central Government.Appeal to Supreme Court.

Section 15 Z provides that any person aggrieved by any decision or order of the Securities Appellate Tribunal may file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Securities Appellate Tribunal to him on any question of law arising out of such order:

Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days.

Right of appeal to Securities Appellate Tribunal against refusal of stock exchange to list securities of public companies

(1) Where a recognized stock exchange, acting in pursuance of any power given to it by its bye-laws, refuses to list the securities of any company, the company shall be entitled to be furnished with reasons for such refusal, and may,

(a) Within fifteen days from the date on which the reasons for such refusal are furnished to it, or

(b) Where the stock exchange has omitted or failed to dispose of, within the time

specified in sub-section (1A) of section 73 of the Companies Act, 1956 (1 of 1956), (hereafter in this section referred to as the specified time), the application for permission for the shares or debentures to be dealt with on the stock exchange, within fifteen days from the date of expiry of the specified time or within such further period, not exceeding one month, as the Securities Appellate Tribunal may,

on sufficient cause being shown, allow, appeal to the Securities Appellate Tribunal having jurisdiction in the matter against such refusal, omission or failure, as the case may be, and thereupon the Securities Appellate Tribunal may, after giving the stock exchange, an opportunity of being heard,

(i) Vary or set aside the decision of the stock exchange; or

(ii) Where the stock exchange has omitted or failed to dispose of the application within the specified time, grant or refuse the permission, and where the Securities Appellate Tribunal sets aside the decision of the recognized stock exchange or grants the permission, the stock exchange shall act in conformity with the orders of the Securities Appellate Tribunal.

(2) Every appeal under sub-section (1) shall be in such form and be accompanied by such fee as may be prescribed.

(3) The Securities Appellate Tribunal shall send a copy of every order made by it to the Board and parties to the appeal.

(4) The appeal filed before the Securities Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of receipt of the appeal.Powers and functions of the Registrar

(1) The Registrar shall have the custody of the records of the Appellate Tribunal and shall exercise such other functions as are assigned to him under these rules or by the Presiding Officer by a separate order in writing.

(2) The official seal shall be kept in the custody of the Registrar.

(3) Subject to any general or special direction by the Presiding Officer, the seal of the Appellate Tribunal shall not be affixed to any order, summons or other process have under the authority in writing from the Registrar.

(4) The seal of the Appellate Tribunal shall not be affixed to any certified copy issued by the Appellate Tribunal save under the authority in writing of the Registrar.

Additional powers and duties of Registrar

In addition to the powers conferred elsewhere in these rules, the Registrar shall have the following powers and duties subject to any general or special orders of the Presiding Officer namely:-

(1) to receive all appeals and other documents;(2) to decide all question arising out of the scrutiny of the appeals before they are registered;(3) to require any appeal presented to the Appellate Tribunal to be amended in accordance with the rules;(4) subject to the directions of the Presiding Officer to fix date of hearing of the appeals or other proceedings and issue notices thereof;(5) direct any formal amendment of records;(6) to order grant of copies of documents to parties to proceedings;(7) to grant leave to inspect the record of Appellate Tribunal;(8) dispose of all matters relating to the service of notices or other processes, application for the issue of fresh notice or for extending the time for or ordering a particular method of service on a respondent including a substituted service by publication of the notice by way of advertisements in the newspapers;(9) to requisition records from the custody of any court or other authority.

CASE

IN THE SECURITIES APPELLATE TRIBUNAL MUMBAI

Appeal No. 108 of 2007

Date of decision : 23.10.2007

Pilot Credit Capital Limited Appellant

Versus

1. The Adjudicating Officer,

Securities and Exchange Board of India

2. Securities and Exchange Board of India Respondents

Mr. R.K. Pandey, FCA for the Appellant.

Dr. Poornima Advani Advocate with Ms. Sejal Shah Advocate for the Respondents.

Coram : Justice N.K. Sodhi, Presiding Officer

Arun Bhargava, Member

Utpal Bhattacharya, Member

Per : Justice N.K. Sodhi, Presiding Officer (Oral)

Sudden spurt in the price and trading volumes of shares of some companies had been engaging the attention of the Securities and Exchange Board of India (for short the Board). IFSL Limited (for short the company) which was listed on the Bombay Stock Exchange (BSE) was one such company. Detailed investigations were ordered to look into the trading of the scrip and on the basis of the material collected by the Board, it passed an ex-parte interim order on September 28, 2005 restraining, among others, one Jay Shah from buying, selling or dealing in the scrip of the company directly or indirectly till further directions. This ex-parte order was immediately put up by the Board on its website and was sent to the Stock Exchanges across the country including the BSE. It is not in dispute that BSE on receipt of that order put it on its website and also put up the same on its notice board for the information of all and sundry. Rule 67 of the Rules framed by the BSE provides that a notice to the general body of its members may be published by posting the same on the notice board and every member shall be deemed to be affected by such notice immediately after it is posted.Jay Shah, the barred entity had been trading in the scrip of the company through

India Infoline Securities Ltd. as his broker. After the passing of the ex-parte order on September 28, 2005 Jay Shah did not trade in the scrip of the company through his earlier broker and approached the appellant which is also a member of the BSE and a registered stock broker with the Board. It is common case of the parties that despite the restraint order passed by the Board, Jay Shah traded in the scrip of the company through the appellant as his broker on 11.10.2005 and 14.10.2005. On both these days the appellant executed a number of trades on behalf of Jay Shah and traded in as many as 1,92,993 shares of the company. This trading was obviously contrary to the restraint order passed by the Board. We are informed that the Board has taken appropriate action against Jay Shah for violating the restraint order. Since the appellant had acted as a broker it was also served with a show cause notice dated February 2, 2006 alleging that it had not exercised due skill, care and diligence while executing trades on behalf of Jay Shah as required of

a stock broker in terms of para A(2) of Schedule II of the Code of Conduct prescribed for stock brokers. The appellant was required to show cause why penalty be not levied against it under section 15HB of the Securities and Exchange Board of India Act, 1992 (for short the Act). The appellant filed its reply stating that it had no knowledge of the restraint order dated September 28, 2005. It was pleaded that the appellant was not a party to the restraint order nor was the said order served on it either by the Board or by the BSE and since it was not aware of the same it had committed no violation whatsoever. On a consideration of the material available on the record the adjudicating officer came to the conclusion that the appellant was guilty of not exercising due skill,care and diligence as a stock broker and as a result of its negligence, it allowed a debarred entity to trade in the scrip of the company. Accordingly, by his order dated April 5, 2007 he imposed a monetary penalty of Rs. 5 lacs on the appellant. It is against this order that the present appeal has been filed under section 15T of the Act.

We have heard Dr. Rajnish Pandey, Chartered Accountantthe authorized representative of the appellant and also the learned counsel for the Board. What is contended on behalf of the appellant is that it was not aware of the restraint order dated September 28, 2005 and, therefore, it could not have violated any of the provisions of Code of Conduct prescribed for the stock brokers under the Securities and Exchange Board of India (Stockbrokers and Sub-Brokers) Regulations, 1992 (hereinafter called the Regulations). The learned counsel for the respondent, on the other hand, pointed out that the restraint order was on the website of the Board as well as of the BSE and that the appellant as a stock broker was required to access the same while dealing with its clients on whose behalf it was executing trades in the securities market. She relied upon Rule 67 of the Rules framed by the BSE referred to in the earlier part of the order. We have given our thoughtful consideration to the rival contentions of the parties and are of the view that the charge levelled against the appellant stands established on the facts of this case. Para A in Schedule II to the Regulations prescribes the Code of Conduct for stock brokers. It provides that a stock broker shall maintain a high standard of integrity, promptitude and fairness in the conduct of all his business and that he shall act with due skill, care and diligence in the context of his business. The short question that we are required to answer is whether the appellant acted with due skill, care and diligence while executing trades on behalf of Jay Shah on 11.10.2005 and 14.10.2005. Admittedly, on those dates Jay Shah had been debarred by the Board from trading in the scrip of the company. We are prepared to accept the plea of the appellant that it was not aware of the restraint order but that will not absolve the appellant from performing its duty as a stock broker which it was required to do under the Code of Conduct. The charge against the appellant is not that it allowed a debarred entity from trading in the scrip of the company. The charge is that it had failed to exercise due skill, care and diligence while executing the trades. The appellant is a member-broker of the BSE. The least that was expected from it was that it should have accessed the website of the BSE to make himself aware of the various notices, orders and circulars issued by it or by the Board. Had it done so, it would have become aware of the restraint order which, as already observed, was on the website of both the BSE and the Board. In that event it would not have allowed Jay Shah to trade in the scrip of the company. Not having done so we are clearly of the view that the appellant was negligent in the performance of its duties as a stock broker and that it failed to exercise due skill, care and diligence while executing the trades in question. The consequences of this culpable negligence have been rather grave. A barred entity was allowed to trade in the market which is detrimental to the interests of the investors and also to the market itself. In this view of the matter, we uphold the impugned order.

The learned authorized representative of the appellant then urged that the penalty levied by the adjudicating officer is highly excessive and the impugned order is harsh. We do not think so in view of the grave consequences that flow from the negligence of the appellant. In the result, the appeal fails and the same is dismissed with no order as to the costs.

CONCLUSIONSAT body may get more powers

The Securities Appellate Tribunal (SAT) will be the umbrella financial markets appellate tribunal and suitably renamed.

The government is considering a common appellate authority for insurance and all instruments traded on the stock or commodity exchanges. This comes after the formation of the Financial Stability Development Council, a statutory body to coordinate the functioning of financial market regulators.

Bibliography

http://www.sebi.gov.in/acts/act15ac.htmlhttp://www.moneycontrol.com/news-topic/securities-appellate-tribunal/http://www.sebi.gov.in/acts/act18f1.htmlhttp://sat.gov.in/ENGLISH/PDF/E0000_RT12.PDFhttp://www.rawlaco.in/detail/5793.aspxhttp://www.sebi.gov.in/acts/depositories.pdfhttp://www.sebi.gov.in/cms/sebi_data/attachdocs/1379572440984.pdf Given under Section 15 L of Securities Exchange Board of India Act 1992.

Given under Section 15 M Securities Exchange Board of India Act 1992.

Given under section 15 N Securities Exchange Board of India Act 1992.

Substituted for Presiding Officer of a Securities Appellate Tribunal by the SEBI (Amendment) Act 2002, w.e.f. 29-10-2002

Substituted for Presiding Officer, by the SEBI (Amendment) Act 2002, w.e.f. 29-10-2002

Substituted for said Presiding Officer, by the SEBI (Amendment) Act 2002, w.e.f. 29-10-2002.

Substituted for Presiding Officer, by the SEBI (Amendment) Act 2002, w.e.f. 29-10-2002.

www.sebi.gov.in/commreport/clause49.htm

www.icsi.edu/WebModules/LinksOfWeeks/CS_NOV2013.pdf

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1379572440984.pdf

http://www.nyse.com/Frameset.html?displayPage=/listed/1022540125610.html

www.oecd.org/dataoecd/3/10/43056196.pdf

http://www.sebi.gov.in/acts/act18f1.html

Substituted for Sub-sec (1) & (2) by the SEBI (Amendment) Act 1999, w.e.f. 16-12-1999. Prior to their substitution, Sub-sections (1) & (2) were read as under: (1) Save as provided in sub-section (2), any person aggrieved by any order made by any Adjudicating Officer under this Act, may prefer an appeal to a Securities Appellate Tribunal having jurisdiction in the matter. (2) No appeal shall lie to the Securities Appellate Tribunal from an order made by an Adjudicating Officer with the consent of the parties.

Substituted for a copy of the order made by the adjudicating officer by SEBI (Amendment) Act 1999, w.e.f. 16-12-1999

Substituted for parties, SEBI (Amendment) Act 1999, w.e.f. 16-12-1999

www.oecd.org/dataoecd/3/10/43056196.pdf

www.sebi.gov.in/cms/sebi_data/attachdocs/1413803106939.pdf

http://www.ifc.org/wps/wcm/connect/6ab71c8048a7e7b3accfef6060ad5911/Focus_ENFCorpGov3.pdf?MOD=AJPERES

Substituted for section15Z by the SEBI (Amendment) Act, 2002, w.e.f. 29-10-2002. Prior to its substitution, it read as under:- 15Z. Appeal to High Court.- Any person aggrieved by any decision or order of the Securities Appellate Tribunal may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Securities Appellate Tribunal to him on any question of fact or law arising out of such order: Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days.

Substituted for section15Z by the SEBI (Amendment) Act, 2002, w.e.f. 29-10-2002. Prior to its substitution, it read as under:- 15Z. Appeal to High Court.- Any person aggrieved by any decision or order of the Securities Appellate Tribunal may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Securities Appellate Tribunal to him on any question of fact or law arising out of such order: Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days.

Substituted by the Depositories (Appeal to Securities Appellate Tribunal) (Amendment) Rules, 2005 w.e.f. 31.1.2005. Prior to its substitution, sub-rule (4) read as under: Subject to any general or special direction by the Presiding Officer, the official seal of the Appellate Tribunal shall not be affixed to any order, summons or other process save under the authority in writing from the Registrar.

22