2013 (3) TMI 891 - SC - SEBI

Summary

In the case cited as 2013 (3) TMI 891 - Supreme Court, the Supreme Court of India, comprising Hon'ble Justices Chandramauli Kr. Prasad and V. Gopala Gowda, addressed an appeal by the Securities and Exchange Board of India (SEBI). The appellant challenged an order by the Securities Appellate Tribunal (SAT), which had set aside SEBI's directive prohibiting Roopram Sharma from accessing the capital market and dealing in securities for three years. The Tribunal had acknowledged that the company's public issue was fraudulent and manipulated, implicating Sharma, but found the order akin to a penalty, which Section 11B of the Securities and Exchange Board of India Act, 1992, does not authorize, referencing Sterlite Industries (India) Ltd. v. SEBI.

SEBI's counsel, Mr. Altaf Ahmed, argued that the Tribunal's view contradicted the Supreme Court's decision in SEBI v. Ajay Agarwal, asserting that the Tribunal's interpretation was incorrect. The Supreme Court concurred with SEBI, referencing the Ajay Agarwal case, and concluded that the Tribunal's judgment lacked legal support. Consequently, the Supreme Court allowed the appeal, overturning the Tribunal's decision, but did not award costs.