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A turbulent year for SEBI at SAT

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In 2023, the Hon’ble Securities Appellate Tribunal (SAT) has passed various landmark judgments including various judgments against the market regulator, SEBI for instance in the NSE India Co-location mater, Satyam Computer Services Ltd matter etc. (Readers can read more about the landmark judgments of SAT in 2023 at the following link : https://lnkd.in/dHHG2sV8).

While the majority of appeals before the SAT i.e. 53.6% went in the favour of SEBI, there is a perception that when it comes to high profile matters, SEBI usually gets the short end of the stick.

In this background, The Hindu businessline has featured an article discussing this trend. The said article features views of Mr. Sumit Agrawal, Managing Partner, Regstreet Law Advisors, and former SEBI officer who opined that, “Some notable cases saw the SAT expressing strong criticism of SEBI, either due to the regulator persisting in issuing orders contrary to established legal principles or acting in a non-uniform manner. It’s essential to consider that the constitutionality of delegated legislations and many practices of SEBI are still awaiting resolution by the Supreme Court”

With respect to the recommendations of the expert committee noted by the Supreme Court of India Court in the recent Adani GroupHindenburg Research matter, Mr. Sumit Agrawal was of the opinion that “Implementing these recommendations is crucial to dispel the perception that SEBI consistently faces setbacks in significant cases”

Mr. Sumit Agrawal was also of the view that in the past, SAT’s presiding officers passed orders commenting on the conduct of WTMs or AOs, copies of which were then sent to the Finance Minister, Finance Secretary, or the incumbent SEBI Chairperson. Such occurrences have largely been absent in recent years and that it is imperative for SEBI to shift from a policing mindset to fostering a more judicial perspective within its administrative staff. The regulator needs to view the SAT not as an adversary but as a judicial guide in its regulatory endeavours.

The Hindu businessline article also features the views of Mr. Vaibhav Kakkar of Saraf and Partners, Mr. Anil Choudhary of Finsec Law Advisors, Mr. Sidharth S. Kumar of BTG Advaya and Mr. Ravi Prakash of Corporate Professionals Advisors and Advocates.

Readers can share their views with Regstreet Law Advisors on info@regstreetlaw.com

A copy of The Hindu businessline article is enclosed below and accessible at: https://lnkd.in/gP8Z3NiR


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