Arbitrary Date Restriction in SEBI Circular on Margin Penalty Refunds Struck Down as Discriminatory Under Article 14

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....HC quashed the arbitrary date stipulation (11.10.2021) in Circular Ref.No.60/2022 regarding refund of penalties for short/non-collection of upfront margins. The court found no justifiable basis for this date selection, which created discriminatory treatment between investor groups who had penalties passed on before and after the cutoff date. This violated Article 14 of the Constitution by adversely affecting similarly situated investors based on timing outside their control. The GRC's order dated 31.03.2023 was set aside and matter remanded for de novo hearing without being bound by the 11.10.2021 date restriction. The TM must refund penalties if other qualifying conditions are met, regardless of when the penalty was originally passed on to investors.....