Securities Appellate Tribunal

Contents  hide 

1 INTRODUCTION

2 APPEAL AGAINST THE ORDER OF SAT

3 ORDER

4 PERSON AGGRIEVED

5 APPEAR BEFORE SAT

6 PROCEDURE FOR APPEAL

7 LIMITATION PERIOD

7.1 Related

INTRODUCTION

The Securities Appellate Tribunal is a statutory entity constituted pursuant to Section 15K of the Securities and Exchange Board of India Act. In particular, the Securities Appellate Tribunal was set up to hear an appeal against an order given under the SEBI Act by the SEBI (Securities and Exchange Board of India) or by an adjudicating officer.

An appeal is nothing but the continuation of the original adjudication as stated in Hasmat Rai v. Raghunath Prasad

 The appeal may be brought on the basis of two grounds pursuant to subsection (1) of section 15T of the SEBI Act, 1992.

In the first place, an appeal must be brought against an order given by the adjudicating officer or the SEBI Board. Second, the individual aggrieved by such a decision should be the one who appeals. The appeal can only be sustained if the above conditions are met.

APPEAL AGAINST THE ORDER OF SAT

Any person who is aggrieved by any SAT decision or order may bring an appeal before the Supreme Court. Only on a question of law can an appeal be lodged. The appeal shall be lodged within 60 days of the date on which the SAT receives a copy of the judgement or order.

The Supreme Court may allow an additional time of 60 days to bring an appeal if it is satisfied that the appellant has been prevented from lodging an appeal within the first 60 days on fairgrounds.

ORDER

At the grass-root stage, a decision that is executed in the form of a command is understood to be an order.

The difference between an order and a request or advice lies in the essence of the implications. Resulting from their non-compliance.[1]

The division bench of Bombay High Court came up with a narrow interpretation of sec 15z by   finding that there is no appeal against an order.It should, however, be formally adjudicated and should be capable of influencing the rights of a person if an order is appealed.Furthermore, if it is not necessary to appeal an order solely on the basis of a breach of procedural law.It was interpreted on the same grounds that no appeal against an interlocutory order given under Sec 15T could be brought. This is because an interlocutory order is one that can not affect another person’s rights.

[2] It was interpreted on the same grounds that no appeal against an interlocutory order given under Sec 15T could be brought. This is because an interlocutory order is one that can not affect another person’s rights.

PERSON AGGRIEVED

It is noteworthy that an individual aggrieved by SEBI’s orders is empowered to appeal against an order when no other individual can do so. It can also be interpreted as locus standi. To file the appeal only with the person who is aggrieved by an order of SEBI before SAT lies. Furthermore, any person who is aggrieved is entitled to file an appeal. Irrespective of whether he was a member of the proceedings before the Board.[3] However, the third party is not entitled to appeal on the ground that the penalty levied by SEBI is increased for the purpose of settling individual scores.

It was held by the Supreme Court that mere disappointment with the decision does not become the legitimate ground for filing the appeal, but it is necessary for an order to cause a legal grievance by wrongfully depriving the person of something in a wrongful manner.[4]

SAT by virtue of Jasbhai Motibhai Desai v. Roshan Kr& Ors[5] laid down the test so that there can be an easy distinction between the busy body of meddlesome interlopers, strangers and persons aggrieved.

 APPEAR BEFORE SAT

As per the SEBI Act, any authorized person is a Company Secretary, Chartered Accountant (CA). Cost Accountant or Legal Practitioner can appear before Securities Appellate Tribunal (SAT).

PROCEDURE FOR APPEAL

An appeal should be presented in the prescribed form by any aggrieved person in the registry of the appellate tribunal. Within whose jurisdiction falls or can be sent by registered post addressed to the Registrar. The appeal sent by post should be presented in the registry on the same date. On which it was received in the registry.

LIMITATION PERIOD

Any appeal to the Securities Appellate Tribunal should be lodged within 45 days of receipt. By the Securities and Exchange Board of India or by the Adjudicating Office of a copy of the order.

The Securities Appellate Tribunal may, after the expiry of the specified period of 45 days. Allow an appeal if the grounds for failure to lodge an appeal within that period are satisfied.

The appeal, together with the additional copies for each additional appeal. Should be presented in three copies and signed by the authorized person.

The Securities Appellate Tribunal may confirm, amend or set aside the order appealed against upon receipt of the appeal. And that appeal should be dismissed within 6 months of the date of receipt of that appeal.

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[1] Eider E-Commerce v. SEBI, Appeal No 20/2000, SAT Order Dated 12.01.2001

[2] Rusoday Securities Ltd v. National Stock Exchange India Ltd &Ors, [2009] SCL 154(SAT)

[3] Videocon Internatinal v. SEBI, Appeal nos. 23-26/2002. Order dated 20.06.2002

[4] Adi Pherozshah Gandhi v. HM Servai, AIR 1971 SC 385

[5] AIR 1976 SC 578