Finance Minister Arun Jaitley proposed to amend the Sebi Act in order to increase benches in the Securities Appellate Tribunal (SAT). Currently, SAT has only one bench which sits in Mumbai. All the orders passed by the Securities and Exchange Board of India (Sebi) can be appealed in SAT.
The proposed move will help expedite cases related to securities markets. SAT is a statutory body established under the provisions of the Sebi Act, 1992, to hear and dispose of appeals against orders passed by the capital markets regulator. While unveiling the Budget 2016-17 in the Lok Sabha,Jaitley proposed to amend the Sebi Act to increase benches in SAT to reduce pendency.
As per the latest Sebi data, 520 appeals were filed before SAT during 2014-15 whereas 103 appeals were dismissed and 381 appeals were pending at the end of the year. Besides, 16 Sebi orders were upheld with changes.As per the Sebi Act, the orders passed by the regulator can be appealed before SAT while the Tribunal’s orders can be further challenged before the Supreme Court.
The success rate in the Securities Appellate Tribunal for2014-15 stood at 90 per cent compared with 88 per cent in 2013-14, Sebi has said. Against SAT’s orders, five appeals were filed by Sebi whereas 31 appeals were filed against Sebi in the Supreme Court during 2014-15.
Nine appeals were disposed of where the appeals were filed by Sebi while 25 appeals were disposed of where the appeals were filed against Sebi.