Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Securities Contracts (Regulation) Act 1956 - |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Securities Contracts (Regulation) Act, 1956 - ss. 13, 2(i) - Securities and Exchange Board of India Act, 1992 - s. 12A(a), (b), (c) - Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 - Initial public offerings (!PO) - Shares offered to public at large by two companies - Shares over subscribed - Shares meant for Retail Individual Investors cornered through hundreds of benami/fictitious demat account holders through off market transactions - Violation ofs. 12A(a), (b). (c) of the SEBI Act and Regs 3 and 4(1) of the 2003 Regulations - On appeal, held: It is clear from the transactions that demat account holders were not genuine, they were henami!fictitious and shares were purchased on behalf of someone, who had financed these demat account holders, at a price less than the market price of the shares - Demat account holders used addresses of others and signed in a fishy manner in their demat accounts - Entire chain of the transactions of shares was against the interest of small investors - Transfer of shares did not comply with the requirements of the provision of either s. 13 or s. 2(i) of SCRA - Thus, Whole Time Member as well as Adjudicating Officer rightly held the off market trading indulged into by respondents to be per se illegal, not fair and in violation of the Act as well as Regulations. Securities Contracts (Regulation) Act, 1956 - Nature of- Held: ls a special law to regulate the sale and purchase of shares and securities - Thus, prevails over the provisions of the Contract Act, 1872 and Sale of Goods Act, 1930, insofar as the matters specifically dealt with by the 1956 Act. |
Judge | Hon'ble Mr. Justice Anil R. Dave |
Neutral Citation | 2016 INSC 510 |
Petitioner | Securities And Exchange Board Of India |
Respondent | M/s. Opee Stock-link Ltd. & Anr. |
SCR | [2016] 4 S.C.R. 171 |
Judgement Date | 2016-07-11 |
Case Number | 2252 |
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