Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | (b) (c) ss. 15Z 11B/19 15HB 15HA 11(4) Securities and Exchange Board of India Act 1992: ss. 12(A) (a) ss. 11 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Securities and Exchange Board of India Act 1992: ss. 12(A) (a), (b), (c), ss. 15Z, 15HA, 15HB, ss. 11, 11(4), 11B/19 – Prohibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control – On facts, appellant engaged in manipulative trade as a result share price of a company came to be manipulated – Order passed by the Whole Time Member WTM prohibiting the appellant from carrying on trading in its proprietary account, for a period of four years – Thereafter, the adjudicating officer imposed penalty of Rs 15 lakhs – During the pendency of the proceedings before the tribunal, the appellant was directed to deposit Rs two crores with SEBI, conditional upon which the order passed by the WTM was directed to remain stayed – On appeal, held: WTM while imposing an order of debarment, specifically applied its mind to the impact of manipulation of the price of scrips – Impact of a manipulation cannot be assessed only in terms of the gain caused to the participants themselves, but in terms of the wider consequences of the action on the securities market – In view thereof, the order passed by the WTM cannot be regarded as disproportionate – Moreover, WTM prohibited the appellant from participating in its proprietary account for a specified period, leaving it open to continue operation in their broking account – Thus, the order passed by the WTM not interfered with – Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market Regulations 2003. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2022 INSC 628 |
Petitioner | Mbl And Company Limited |
Respondent | Securities And Exchange Board Of India |
SCR | [2022] 4 S.C.R. 817 |
Judgement Date | 2022-05-26 |
Case Number | 4262-4263 |
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