Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1998 SEBI (Buyback of Securities) Regulations |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Securities and Exchange Board of India Act, 1992 (15 of 1992) Companies Act, 2013 (18 of 2013) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | SEBI (Buyback of Securities) Regulations, 1998 – Regulation 19(3) – Interpretation of – Notice to show cause was issued by the Whole Time Member (WTM) of SEBI to Deccan Chronicle Holdings Limited (DCHL), its Chairperson, Vice-chairperson and Company Secretary-respondent herein – A penalty of Rs.10 lakhs was imposed on the respondent – Respondent was held liable on the ground that he was the Company Secretary when a buyback offer worth Rs.270 crores was made by the company in violation of regulatory provisions – Order set aside by the Securities Appellate Tribunal – On appeal, held: Regulation 19(3) requires the company to nominate a compliance officer and an investors’ service centre – The purpose of the nomination is twofold- to ensure compliance with the buyback Regulations; and to redress the grievances of investors – There is a patent error on the part of the Tribunal in interpreting the Regulations – The Tribunal held that the role of the respondent, who was a Company Secretary, compliance officer, was limited to redressing the grievances of investors – In arriving at the finding, the Tribunal relied upon the latter part of Regulation 19(3) which deals with redressal of the grievances of investors – However, the Tribunal missed the crucial point that the compliance officer is also required to ensure compliance with the buyback regulations, as expressly stipulated in Regulation 19(3) – Interpretation of Regulation 19(3) by the Tribunal is contrary to its plain terms – Impugned order set aside – Proceedings remitted back to the Tribunal for fresh consideration in the light of the interpretation as aforesaid– Securities and Exchange Board of India Act 1992 – s. 12A(a), (b) & (c), s. 15HA – Companies Act 1956 – ss. 68, 77A – Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations 2003 – Regulations 3(a)-(d), 4(1), 4(2)(f), (k) and (r). |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2023 INSC 719 |
Petitioner | Securities And Exchange Board Of India |
Respondent | V Shankar |
SCR | [2023] 6 S.C.R. 419 |
Judgement Date | 2023-02-08 |
Case Number | 527 |
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