The AT held that the penalty imposed on the Exchange is...

The AT held that the penalty imposed on the Exchange is unsustainable and set aside the impugned order. The Tribunal found no material demonstrating that the Exchange itself authorized investments or acquisitions by its subsidiaries; only the subsidiaries made the investments. Absent a board resolution or evidence attributing those acts to the Exchange, the Tribunal concluded that penal provisions must be construed strictly and that the impugned provisions do not permit imputation of a subsidiary's independent activities to its principal. Consequently, Regulation 43(1) of the 2012 Regulations and Regulation 38(2) of the 2018 Regulations were held inapplicable and the Regulatory authority's penalty was vacated.