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of <h1>Delays in SEBI Act enforcement highlight need for consistent penalties to ensure regulatory fairness</h1> <h3>Ms. Aditi Dalal Versus Securities and Exchange Board of India</h3> The judgment addressed the delay in initiating proceedings under the SEBI Act, 1992, due to the inordinate time gap between the manipulation of scrips and ... - Issues involved: Delay in issuing directions u/s 11 and 11B of SEBI Act, 1992; Manipulation of scrips of six companies; Inconsistencies in orders issued by different whole time members.Issue 1: Delay in issuing directions u/s 11 and 11B of SEBI Act, 1992The judgment highlighted the inordinate delay in initiating proceedings against the appellants, which led to a modification of the impugned order. The manipulation of six scrips in question was said to have occurred in 1999-2000, but proceedings were only initiated in 2005, with the final order debarring the appellants issued in August 2011. The delay, coupled with the merits of the case, led to the decision to only warn the appellants instead of imposing a market access ban.Issue 2: Manipulation of scrips of six companiesThe Securities and Exchange Board of India (SEBI) found that the appellants, along with others, manipulated the scrips of six companies during the period from 1999-2001. The appellants were alleged to be connected entities involved in similar manipulations across different companies. Separate show cause notices were issued for each company, leading to varying orders by different whole time members. The judgment emphasized the need for consistency in handling such cases to avoid discrepancies in penalties imposed.Issue 3: Inconsistencies in orders issued by different whole time membersThe judgment pointed out inconsistencies in the orders issued by different whole time members regarding the manipulation of scrips. The varying periods of debarment and warnings issued to the appellants for similar manipulations raised concerns about the lack of uniformity in decision-making. The need for a consistent approach in dealing with cases involving similar violations was emphasized to ensure fairness and justice in regulatory actions.This summary provides a detailed overview of the issues involved in the legal judgment, highlighting the key aspects related to delay in issuing directions, manipulation of scrips, and inconsistencies in orders issued by different authorities.
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