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TMI Blog2019 (7) TMI 1894X X X X Extracts X X X X X X X X Extracts X X X X ..... 17 and in Appeal No.53 of 2017, whereby the Appellate Tribunal rejected the appeal preferred against the order dated 03.02.2017 passed by the Disciplinary Action Committee of National Stock Exchange of India Ltd. which found the appellant guilty of indulging in financial irregularities and misconduct in conduct of business, and for which a fine/penalty of Rs. 10 lakhs with suspension from trading membership of the appellant for five trading days came to be imposed. The argument of the appellant before this Court is that the penalty/fine could be imposed only in the context of Circular dated 27.06.2013. The relevant part of the circular read thus: "19. Improper use of funds raised by placing of clients securities with bank/any other finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : (8) The relevant authority may require a trading member to suspend its business in part or in whole: (a) Prejudicial Business: When in the opinion of the relevant authority, the trading member conducts business in a manner prejudicial to the Exchange by making purchases or sales of securities or offers to purchase or sell securities for the purpose of upsetting equilibrium of the market or brining about a condition of demoralization in which prices will not fairly reflect market value, or" It is then submitted that ample power is bestowed on the appropriate authority to suspend the trading membership of a member who indulges in prescribed misconduct. It is contended that no fault can be found with the order passed by the appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal at all. Resultantly, we deem it appropriate to set aside the impugned order and relegate the appellant before the Appellate Tribunal by restoring appeal No. 53 of 2017 to the file of the Securities Appellate Tribunal, Mumbai for reconsideration only on the issue of quantum of punishment awarded to the appellant. Indeed, while passing the final order, it will be open to the Tribunal to pass appropriate order with regard to the amount deposited by the appellant pursuant to order dated 27.02.2017 passed by this Court. We make it clear that the Appellate Tribunal will not go into technicalities of the effect of withdrawal of the appeal by the appellant bearing No. 60/2017. The Appellate Tribunal must decide the restored appeal on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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