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2015 (8) TMI 381 - SECURITIES APPELLATE TRIBUNAL MUMBAIFit and proper criteria for holding shares – By impugned order SEBI declared appellant not “fit and proper person” to acquire or hold any equity shares without any basis of its own but solely on order of Forward Market Commission disqualifying appellant from holding commodity shares – Held that:- order passed by FMC would have bearing on securities market, because both FMC and SEBI were regulating trades executed on respective exchanges – Fit and proper person criteria for person to acquire or hold shares of exchanges in commodity market is comparable with criteria framed by SEBI for securities market – Therefore, if person was declared by FMC to be not fit and proper person to acquire or hold commodity shares, then that person shall be deemed to be not fit to hold shares of exchanges operating under securities market – Order passed by one regulator would ipso facto have to be applied by another regulator, because, very object of imposing such stringent condition was to set high standards for exchanges operating in both financial markets – Impugned decision of SEBI holding appellant not ‘fit and proper person’ to hold shares of stock exchanges based on decision of FMC cannot be faulted – Appeal dismissed – Difference of opinion – Majority order – Decided against appellant.
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