2024 (12) TMI 1465 - SCH - SEBI

Supreme Court Dismisses Appeals; No Law Question Found u/s 15Z of SEBI Act, 1992; Applications Disposed.

The SC dismissed the appeals, finding no question of law warranting interference under Section 15Z of the Securities and Exchange Board of India Act, ... Unlawful gains by fraudulent and manipulative strategy made by Reliance Company - responsibility of noticee no. 2 i.e. the Managing Director - violating Section 12A of the SEBI Act r/w Regulations 3 and 4 of the SEBI PFUTP Regulations - vicarious liability on both criminal and civil liability for contravention of the SEBI Act, Rules and Regulations - Liability against violations committed by the company As decided in RELIANCE INDUSTRIES LIMITED, MR. MUKESH D. AMBANI, NAVI MUMBAI SEZ PVT. LTD., MUMBAI SEZ LTD. VERSUS SECURITIES AND EXCHANGE BOARD OF INDIA, [2023 (12) TMI 260 - SECURITIES APPELLATE TRIBUNAL MUMBAI] the word “complicit” means involvement with others in an activity which is unlawful. On the other hand, the word “implicit” is suggestive though not directly expressed.Thus, in the absence of any specific finding by the AO on noticee no. 2 complicit involvement in the execution of the implementation plan or in the execution of the trades, the AO cannot dwell into surmises and conjectures and base its findings on presumption to hold that the noticee no. 2 was implicitly involved in the transactions on the ground of being a Managing Director and which implies a high level of accountability of knowledge of overall functioning of the Company. The burden under Section 27 was discharged by noticee no. 2 and the AO has miserably failed to prove that noticee no. 2 was involved in the execution of the trades carried out by two senior executives. HELD THAT:- As no question of law involved in these Appeals warranting our interference in exercise of our jurisdiction under Section 15Z of the Securities and Exchange Board of India Act, 1992. Appeals are accordingly dismissed. The Supreme Court, with Justices J. B. Pardiwala and R. Mahadevan presiding, dismissed the appeals, stating, 'We find no question of law involved in these Appeals warranting our interference in exercise of our jurisdiction under Section 15Z of the Securities and Exchange Board of India Act, 1992.' Consequently, the appeals were dismissed, and any pending applications were disposed of.