2019 (11) TMI 1090 - SCH - SEBI

Supreme Court halts SEBI's powers pending next hearing, providing temporary relief.

The Supreme Court issued an order staying the observations made in Paragraph 78 of the impugned Judgment and Order concerning the powers and jurisdiction ... Legality and veracity of the order passed by the Whole Time Member (‘WTM’) of SEBI under Sections 11 and 11B of the Securities and Exchange Board of India Act, 1992 which empowers SEBI to issue directions in the nature of remedies in the interest of the securities market and investors in securities - whether SEBI as a market regulator could be said to have jurisdiction to pass any of the directions as contained in the SCN? - HELD THAT:- Appearing on behalf of the respondents, accepts notice. Reply to the appeal, if any, be filed within two weeks. The observations made in Paragraph 78 of the impugned Judgment and Order as to powers and jurisdiction of SEBI shall remain stayed till the next date of hearing. List the matter in the second week of December, 2019. Issues Involved:- Stay on observations regarding powers and jurisdiction of SEBI in impugned Judgment and Order.Analysis:The Supreme Court, presided over by Justice Arun Mishra and Justice Indira Banerjee, issued an order in response to the appeal. The counsel for the respondents accepted the notice, and a two-week period was given to file a reply to the appeal. Notably, the Court ordered a stay on the observations made in Paragraph 78 of the impugned Judgment and Order concerning the powers and jurisdiction of SEBI until the next hearing. The matter was scheduled to be listed in the second week of December 2019. The order provided a temporary halt to the impact of the mentioned observations on SEBI's powers and jurisdiction, emphasizing the significance of further deliberation on this issue.