Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1992: ss. 24 and 24A Securities and Exchange Board of India Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 Referred Case 11 Referred Case 12 Referred Case 13 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Securities and Exchange Board of India Act, 1992: ss. 24 and 24A – Compounding of offence under – On facts, allegations against appellant-director of a company of price rigging and insider trading in the scrip of the Company – Prosecution of the appellant u/s. 24(1) – Appellant sought the compounding of the offence u/s. 24A – Rejection of, by the trial judge upholding the objection of the Securities and Exchange Board of India (SEBI) that the offence could not be compounded without its consent – Upheld by the High Court holding that the trial has reached the stage of final arguments and the application for compounding cannot be allowed without SEBI’s consent – On appeal, held: Power to compound offences u/s. 24A rests exclusively with the Securities Appellate Tribunal-SAT or a court before which such proceedings are pending and SEBI’s consent for compounding offences is not mandatory – However, the SAT or the concerned courts must seek and consider the view of SEBI on matters related to the compounding of offences – Allegations involved serious acts which impinged upon the protection of investors and the stability of the securities’ market – Thus, SEBI justified in opposing the request for the compounding of the offences – Decision taken by SEBI is not mala fide nor does it suffer from manifest arbitrariness – Thus, an order for compounding not warranted – Order of the High Court is upheld. Objects and reasons of enactment – Held: Is to provide for the establishment of a Board to protect the interests of investors in securities and to promote the development of and to regulate the securities market. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2021 INSC 353 |
Petitioner | Prakash Gupta |
Respondent | Securities And Exchange Board Of India |
SCR | [2021] 4 S.C.R. 862 |
Judgement Date | 2021-07-23 |
Case Number | 569 |
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