2015 (8) TMI 1401

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....e trading in the securities of the petitioner no.1-company has been suspended with effect from 28th August, 2015 till further directions. This has done as recorded in the impugned order in view of the prima facie view that there was market manipulation in respect of the shares of petitioner no.1-company. 2. Mr. Aspi Chinoy, learned Senior Advocate appearing for the petitioners challenges the impugned order, inter alia on the following grounds:- (a) Bye law 21 of the Stock Exchange Bye Laws under which the impugned order is passed is violative of Article 14 of the Constitution as it does not provides for any hearing before passing of the order; (b) impugned order records it is issued in accordance with the directions by ....

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....SEBI is a necessary party to the present petition. (b) Statutory alternative remedy is available to the petitioners under the Securities Contracts (Regulation) Avt,1956 and it could avail of the same; (c) the impugned order has been passed on the material which prima facie would require further investigation into the dealings of the petitioners' Company's shares as it appears to be not in the interest of the fair operation of the market; (d) so far as the issue of the order being issued under Bye-law 21 of the Bombay Stock Exchange Bye-laws by the Governing Board or the Executive Director on behalf of the Governing Board, it is submitted that the necessary resolutions have been passed by the Governing Boar....

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....erein similar modus operandi of market manipulation was adopted, prima facie there appears to be certain market manipulation affecting the interest of investor and hence, it is necessary that detailed investigation be carried out by the Exchange/SEBI.                                     **                                            **     ....

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....change. The running of Stock Exchange is an area of specialization requiring expertise and in view thereof the SEBI has been appointed as a Regulator. This is to ensure that dealings in the shares on the Stock Exchange, are not manipulated to the detriment of genuine investors in stock market. The decision taken by the impugned order being an interim order pending investigation is subject not only to the representation to the Stock Exchange but is also subject to appeal to the Securities Appellate Tribunal. Therefore, the submissions urged before us could be urged either in the representation before the Official of the Stock Exchange or before the Securities Appellate Tribunal in an appeal, if they choose to prefer an appeal. The relief whi....