Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Credit Rating Agencies Securities and Exchange Board of India |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Act(s) Referred | Securities and Exchange Board of India Act, 1992 (15 of 1992) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 - Regulations 3, 4(e), 6, 7 and First Schedule Form A - Application under Regulation 3 by company, to Securities and Exchange Board of India (SEBI) seeking registration as a Credit Rating Agency (CRA) - SEBI required the company to furnish complete details of its promoters, confirm the status of their eligibility under Regulation 4(e) (i.e. they have continuous net worth of minimum Rs. 100 crores as per its Audited Annual Accounts for the previous five years prior to filing of the application under Regulation 3), and to offer comments on a discrepancy noted in the promoter's net worth certificate etc - The company submitted the net worth certificate of its promoter which was issued on the basis of the certificate provided by their Bankers - SEBI further directed the company to produce accounts of its promoter for another two years after the date of application - On the Company's failure to produce two years account, rejected the application under Regulation 3 - Appeal - SAT allowed appeal of the Company and remitted the matter to SEBI to consider the application without requiring the company to produce the accounts for the two years after filing of the application - Appeal by SEBI - Held: The information sought by SEBI with regard to additional two years was beyond the scope of the Regulations and Form A, hence without jurisdiction - However, SEBI was within its power to ask for the Audited Accounts for the five years preceding the date of application - The Net Worth Certificate for five years did notconform to the provisions contained in the regulation 4(e) as the certificate did not categorically state that it was based on the audited account - Therefore, under Regulation 6, it was duty of SEBI to have rejected the application - SEBI delayed the rejection of the application by granting time to remove the objections even beyond the permissible time - The company taking advantage of the liberty, provided.the audited accounts for the five years preceding the date of application - It has also produced the audited accounts for the subsequent two years - Since SEBI extended the time, the impugned order, not modified - Appeal dismissed - Securities and Exchange Board of India Act, 1992. |
Judge | N/A |
Neutral Citation | 2013 INSC 111 |
Petitioner | Securities And Exchange Board Of India |
Respondent | M/s. Informetics Valuation And Rating Pvt. Ltd. |
SCR | [2013] 3 S.C.R. 426 |
Judgement Date | 2013-02-19 |
Case Number | 291 |
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