SEBI market-access prohibition triggers Section 29A(f) ineligibility for a resolution plan when the bar remains unchallenged.

An existing, unchallenged SEBI prohibition on accessing the securities market attracts ineligibility under Section 29A(f) of the Insolvency and Bankruptcy Code for submitting a resolution plan. The relevant inquiry is the existence of the operative bar, not the correctness of the SEBI order, and the insolvency forum need not re-adjudicate that order in eligibility proceedings. On the facts, a compulsory delisting order had expressly barred the promoters and related entities from accessing the securities market for ten years, so the appellant was rightly held ineligible and could not insist on consideration of its resolution plan.

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Issues: Whether the appellant was ineligible to submit a resolution plan under Section 29A(f) of the Insolvency and Bankruptcy Code, 2016, on account of an existing prohibition imposed by SEBI and the compulsory delisting order.

Analysis: The appellant relied on the moratorium in the CIRP of the holding company and contended that the SEBI action should not be treated as a bar. The record, however, showed an existing order dated 26.06.2018 passed by the competent authority in compulsory delisting proceedings, which expressly prohibited the promoters and related entities from directly or indirectly accessing the securities market for ten years under the Delisting Regulations. Section 29A(f) attaches ineligibility where a person is prohibited by SEBI from trading in securities or accessing the securities market. The existence of that operative prohibition, not its correctness, was the relevant fact. The Adjudicating Authority was not required to test the validity of the SEBI order in the eligibility proceedings, particularly when the appellant had not challenged that order before the appropriate forum.

Conclusion: The appellant was rightly held ineligible under Section 29A(f) and could not insist on consideration of a resolution plan.

Final Conclusion: The rejection of the application declaring the appellant ineligible was upheld and the appeal failed.

Ratio Decidendi: An existing and unchallenged SEBI prohibition on accessing the securities market constitutes ineligibility under Section 29A(f), and the insolvency forum need not re-adjudicate the validity of that prohibition while determining eligibility to submit a resolution plan.

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