Home Case Index All Cases SEBI SEBI + SC SEBI - 2019 (7) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 1894 - SUPREME COURTGuilty of indulging in financial irregularities and misconduct in conduct of business - fine/penalty of ₹ 10 lakhs with suspension from trading membership of the appellant for five trading days came to be imposed - As submitted that the decision of the DAC of NSE is in violation of NSE Circular dated June 27, 2013, because, as per that circular suspending the trading is not contemplated for the violations allegedly committed by the appellant - HELD THAT:- Appellate Tribunal, has not examined this contention but proceeded to reject the appeal on the specious ground that the penalty imposed by the appropriate authority cannot be said to be unreasonable or excessive. The argument of the appellant was that even though the appropriate authority can suspend the trading membership of the member indulging in misconduct, it can be resorted to only when it falls within the concerned Bye-law such as Bye-law 8(a) relied upon by the respondent - which envisages that the trading member must conduct business “in a manner prejudicial to the Exchange” etc. The penalty could not have exceeded an amount of ₹ 1 lakh or 0.1% of the value of misuse, whichever is higher. These arguments have not been dealt with by the Appellate Tribunal 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.
|