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2010 (2) TMI 600 - SUPREME COURTWhether section 11B of the Securities and Exchange Board of India Act, 1992 could be invoked by the Chairman of the Securities and Exchange Board of India in conjunction with sections 4(3) and 11 for restraining the respondent from associating with any corporate body in accessing the securities market and prohibiting him from buying, selling or dealing in securities? Whether any direction can be issued under section 11B for the alleged misconduct said to have been committed prior to introduction of section 11B? Held that:- Appeal allowed. This Court is constrained to quash the order of the Appellate Tribunal and upholds the order of the Chairman of the Board. There is no challenge to those provisions which came by way of amendment. In the absence of any challenge to those provisions, it cannot be said that even though Board is statutorily empowered to exercise functions in accordance with the amended law, its power to act under the law, as amended, will stand frozen in respect of any violation which might have taken place prior to the enactment of those provisions. It is nobody’s case that Board has exercised those powers in respect of a proceeding which was initiated prior to the enactment of those provisions. In fact Board has issued the show-cause notice in terms of section 11B and considered the reply of the respondent. In such a situation, there has no infraction in the procedure.
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