• Securities Law

    Section 15-J of the SEBI Act: SC Expands the AO’s Discretion in the Determination of Penalties

    The Supreme Court of India in the Case of Adjudicating Officer, SEBI Vs. Bhavesh Pabari (“Bhavesh Pabari”)has given an expansive and harmonious interpretation to Section 15-J of the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) holding that the factors enumerated under Section 15-J are not exhaustive but rather illustrative factors to be taken into account by the Adjudicating Officer (“AO”) while adjudging the quantum of penalty to be imposed under Section 15-I and that the AO may take note of other factors as well, in the same analysis. In Bhavesh Pabari, the Apex Court had also delved into the question of the conflict of application between Section 15-J and…

  • Corporate & Commercial Law,  Securities Law

    The Banning of Unregulated Deposit Schemes Ordinance, 2019: Decoding the Law and Procedure

    The Banning of Unregulated Deposit Schemes Ordinance, 2019 (“Ordinance”) has been promulgated by the Hon’ble President of India on 21st February 2019. The Ordinance comes as a substantial step to tackle unregulated and fraudulent deposit schemes in the country that have been able to abuse the Indian “mindset” of savings and their weakness for investment opportunities that sound too good to be true. This article sets out the law and practice under the BUDS Ordinance to elucidate the legal framework behind it.   Background Deposit schemes and chit funds are not foreign or new concepts in India. Presently, there is a wide spectrum of deposit schemes, based around the basic premise of…

  • Securities Law

    SEBI’s Settlement Regulations 2018: Balancing Efficacy and Pragmatism

    The Securities and Exchange Board of India (“SEBI”) has introduced the SEBI (Settlement Proceedings) Regulations, 2018 (“2018 Regulations”) to replace the extant SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2014 (“2014 Regulations”). The 2018 Regulations have have come into force from 1stJanuary 2019 and are meant to add to and evolve the SEBI’s settlement framework so as to improve the existing processes and also act as an enabler for ease of doing business in the growing securities market. This article seeks to analyze the substantial developments brought forth by the 2018 Regulations.   Background SEBI had first put forth a consent mechanism for the settlement of offences under securities law in…

  • Securities Law

    SEBI’s Test of Fit and Proper Person: Dynamic Market, Dynamic Law

    The Securities and Exchange Board of India (“SEBI”), as the primary regulator of the securities market in India strives to create order and fairness in one of the fastest moving, complex, and ever fluctuating markets that is filled with the one of the most conniving bad elements. Yet, more or less, SEBI has performed its function to the letter of its preamble, that is, protecting the investor’s interests and promoting the healthy development of the securities market. This has, partly been achieved by enforcing an effective regime of stringent and dynamic provisions. The point of analysis in this Article is one such dynamic power in the hands of SEBI, that…

css.php