Delegation of SEBI powers permits a higher-ranked officer to decide objections when no available Whole Time Member can hear the matter.

Under the SEBI (Delegation of Statutory and Financial Powers) Order, 2019, powers under sections 11 and 11B may be exercised by different categories of officers depending on the order required. The Tribunal noted that no available Whole Time Member could fairly hear the objections to the ex parte ad interim order because one member was retiring, another had participated in settlement proceedings, and the impugned order had been passed by a different Whole Time Member. It therefore modified the earlier direction and held that, if no Whole Time Member was available, an officer higher in grade, rank or position could be authorised to hear and decide the matter within the stipulated period.

---

---

Issues: Whether the direction to appoint another Whole Time Member for considering the objections to the ex parte ad interim order required modification, and whether in the absence of an available Whole Time Member an officer higher in grade or rank could be authorised to decide the matter.

Analysis: The application was considered in light of the SEBI (Delegation of Statutory and Financial Powers) Order, 2019. The delegation scheme shows that powers under sections 11 and 11B of the SEBI Act can be exercised by different categories of officers depending on the nature of the order required. The Tribunal found that, because one Whole Time Member was retiring, another had participated in settlement proceedings, and the impugned order had been passed by a different Whole Time Member, there was no available Whole Time Member who could fairly hear the matter in terms of the earlier direction. The Tribunal also relied on clause 3(2) of the Delegation Order, which permits exercise of delegated powers by an officer or authority higher in grade, rank or position.

Conclusion: The earlier direction was modified. SEBI was directed to appoint another Whole Time Member, and if no such member was available, an authorised officer higher in grade, rank or position could hear and decide the matter within the stipulated period.

---