Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Securities and Exchange Board of India Act 1992 – s.15HA |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 |
Case Type | Special Leave Petition |
Court | Supreme Court of India |
Disposal Nature | Petition Dismissed |
Headnote | Securities and Exchange Board of India Act, 1992 – s. 15HA – Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 – rr. 3, 4 – Show Cause Notice was issued by Respondent-SEBI to the Petitioner, who was MD and CEO of one Religare Finvest Limited (RFL) [subsidiary of Religare Enterprises Ltd. (REL)], alleging diversion of funds from RFL through several layers of conduit entities for the ultimate benefit of promoters of REL and RFL – Writ petition filed by the Petitioner seeking directions against SEBI, to furnish the documents relied upon by it in the Show Cause Notice – Petitioner also sought orders for supply of a copy of the opinion formed u/r. 3 of the SEBI Adjudication Rules for constituting an Adjudicating Authority to issue the aforesaid Show Cause Notice to the Petitioner – Dismissed – On appeal, held: High Court rightly did not interfere with the proceedings at the stage of the Show Cause Notice – Petitioner was permitted to inspect the opinion formed u/r. 3 of the SEBI Adjudication Rules – There is apparently no rule which requires SEBI to furnish the opinion u/r. 3 to the noticee in its entirety – Documents relied upon for formation of opinion u/r. 3, are not required to be disclosed to the noticee unless relied upon in the inquiry – Further, in course of argument before the High Court, the counsel for SEBI made a statement that SEBI would not rely on any document apart from those which had been provided to the Petitioner – It is well settled that documents which are not relied upon by the Authority need not be supplied – Supreme Court by its interim order had permitted SEBI to hold the inquiry, without relying upon any documents, not supplied to the Petitioner – The interim order will govern the inquiry – No infirmity in the impugned judgment of the High Court – Securities Contract (Regulation) Act, 1956 – Securities Contract (Regulation) (Procedure for holding inquiry and imposing penalties) Rules, 2005. |
Judge | Hon'ble Ms. Justice Indira Banerjee |
Neutral Citation | 2022 INSC 959 |
Petitioner | Kavi Arora |
Respondent | Securities & Exchange Board Of India |
SCR | [2022] 19 S.C.R. 323 |
Judgement Date | 2022-09-14 |
Case Number | 15149 |
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