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SAT can hear appeals in absence of technical member

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    21st May, 2021

The Securities Appellate Tribunal that its bench which has the presiding officer and a judicial member have the powers to hear matters even in the absence of a technical member.

Context    

The Securities Appellate Tribunal that its bench which has the presiding officer and a judicial member have the powers to hear matters even in the absence of a technical member.

About the Securities Appellate Tribunal

  • Securities Appellate Tribunal is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992.
    • It was established to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India.
  • Jurisdiction: SAT hears and disposes of appeals against orders passed by the
    • Pension Fund Regulatory and Development Authority (PFRDA) under the PFRDA Act, 2013.
    • Insurance Regulatory Development Authority of India (IRDAI) under the Insurance Act, 1938
    • General Insurance Business (Nationalization) Act, 1972
    • Insurance Regulatory and Development Authority Act, 1999
  • Composition: SAT consists of a Presiding Officer and Two other members.
    • The Presiding officer is appointed by the Central Government in consultation with the Chief Justice of India or his nominee.
  • Appeals: It has the same powers as vested in a civil court. Further, if any person feels aggrieved by SAT’s decision or order can appeal to the Supreme Court.

Concern of SEBI

  • The order comes after Sebi questioned the composition of the tribunal''s bench hearing the appeals filed before it.
    • The tribunal functions with a presiding officer, a judicial member and a technical member. But right now it was working without a technical member who is appointed by the central government.
    • The section 15L(2)(b) of Sebi Act stipulates that every bench must have at least one technical member as a mandatory provision.
  • Sebi''s argued that since no technical member is present, the constitution of the bench is defective and orders passed by the bench would be "coram non judice".

SAT’s Order

  • Tribunal comprising of a presiding officer and a judicial member is not defective on account of non-availability of technical member and that the bench constituting the presiding officer and judicial member can proceed to hear and decide the appeals, etc which are filed before the SAT.
  • The tribunal has also recommend to make necessary amendments and resolve the discrepancy in the charging section to the proviso under Section 15L(2)(b)".

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