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Supreme Court puts Stay on remarks of ‘Judicial Dishonesty’ by Securities Appellate Tribunal

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Shivani Gadhavi

Published On: January 25, 2022 at 18:17 IST

The Supreme Court of India on January 24, 2022 put a stay on remarks of ‘Judicial dishonesty’ given by the Securities Appellate Tribunal against the adjudicating officer of Securities and Exchange Board of India pertaining to investigation done by the Board on irregular trading activities.

The Supreme Court Bench of Justices Vineet Saran and Anirudha Bose, hearing a Petition filed by the Securities and Exchange Board of India which challenged the order of the Securities Appellate Tribunal, which put a stay on an order given by the Adjudicating Officer of the SEBI.

In the Order, the Adjudicating Officer of the SEBI had imposed a penalty of INR 2 Lakhs on the current respondent named Yatin Pandya HUF under Section 15 HA (Penalty for fraudulent and unfair trade practices) of the Securities and Exchange Board of India Act, 1992.

Yatin Pandya had alleged before the Securities Appellate Tribunal that investigation by SEBI against him is belated. The SAT in this regard stated that the investigation done by the Adjudicating Officer of the SEBI is done with a dishonest judicial intent and that the Officer took the matter very casually.

The Special Leave Petition by the SEBI in the Supreme Court is against the order of the SAT, which also states that the SAT passed an order without any jurisdiction over the matter. The SEBI argued that the SAT is mistaken by making adverse remarks against the Adjudicating Officer and did not follow directions given Supreme Court in its precedents.

In vide of the aforementioned facts and observations, the Supreme Court Bench put a stay on the Order of the Securities Appellate Tribunal regarding the investigation done by SEBI.

Also read: Process of Listing a Company on Stock Exchange