SEBI Circular Appeal Dismissed, Appellant to Pay Costs

The Tribunal dismissed the appeal challenging SEBI circulars requiring companies listed on regional stock exchanges to get listed on major exchanges, stating they are administrative directions. The appellant's argument that the circulars constitute orders under Delisting Regulations was rejected, and the appeal was deemed frivolous. The Tribunal ordered the appellant to pay costs to SEBI, emphasizing the administrative nature of the circulars and the lack of merit in the appellant's arguments.

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Issues:
Challenge to circulars issued by SEBI, Exit route for shareholders of companies listed on de-recognized stock exchanges, Maintainability of the appeal, Nature of impugned circulars, Applicability of previous tribunal decisions, Classification of impugned circulars as administrative or quasi-judicial, Argument regarding orders under Delisting Regulations.

Analysis:
1. The appeal challenges two circulars issued by SEBI in 2014 and 2015, seeking an order for companies listed on regional stock exchanges to get listed on major stock exchanges automatically. The appellant, an investor, argues that the circulars do not provide an exit route for shareholders of companies exclusively listed on de-recognized stock exchanges.

2. SEBI raised a preliminary objection on the maintainability of the appeal, citing a decision by the Apex Court that reversed a previous Tribunal decision. The appellant argued that the impugned circulars are orders under the Delisting Regulations, not mere circulars, and relied on a previous Tribunal decision to support this contention.

3. The Tribunal found the appellant's argument misconceived, stating that the impugned circulars are administrative directions applicable to all companies exclusively listed on de-recognized stock exchanges. It noted that none of the affected companies challenged the circulars, and the proper course for the appellant, if aggrieved, would be judicial review proceedings, not an appeal before the Tribunal.

4. The Tribunal distinguished a previous case where SEBI's communication was deemed quasi-judicial due to its serious consequences on specific companies. In contrast, the impugned circulars in this case were general and did not prejudicially affect any particular company. The appellant's reliance on the previous Tribunal decision was deemed misplaced.

5. The appellant's argument that the impugned circulars constitute orders under the Delisting Regulations was dismissed as frivolous. The circulars directed stock exchanges to provide options for companies to get listed on major exchanges, and the appellant's pursuit of the appeal on such grounds, despite the Apex Court decision, was criticized.

6. Consequently, the Tribunal dismissed the appeal and ordered the appellant to pay costs to SEBI within four weeks. The judgment emphasized the administrative nature of the impugned circulars and the lack of merit in the appellant's arguments regarding their classification and applicability under the Delisting Regulations.

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