2019 (7) TMI 1894

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....t Mumbai in Misc. Application No.49 of 2017 and in Appeal No.53 of 2017, whereby the Appellate Tribunal rejected the appeal preferred against the order dated 03.02.2017 passed by the Disciplinary Action Committee of National Stock Exchange of India Ltd. which found the appellant guilty of indulging in financial irregularities and misconduct in conduct of business, and for which a fine/penalty of Rs. 10 lakhs with suspension from trading membership of the appellant for five trading days came to be imposed. The argument of the appellant before this Court is that the penalty/fine could be imposed only in the context of Circular dated 27.06.2013. The relevant part of the circular read thus: "19. Improper use of funds raised by placing ....

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.... regarding suspension of business reads thus: "Suspension of Business: (8) The relevant authority may require a trading member to suspend its business in part or in whole: (a) Prejudicial Business: When in the opinion of the relevant authority, the trading member conducts business in a manner prejudicial to the Exchange by making purchases or sales of securities or offers to purchase or sell securities for the purpose of upsetting equilibrium of the market or brining about a condition of demoralization in which prices will not fairly reflect market value, or" It is then submitted that ample power is bestowed on the appropriate authority to suspend the trading membership of a member who indulges in prescribed mi....