The Securities Appellate Tribunal (SAT) is a quasi-judicial body established to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India (SEBI). The SAT is an independent body, and its objective is to provide a fair and efficient mechanism for resolving disputes related to securities market transactions. In this article, we will discuss the role and functions of the Securities Appellate Tribunal.
Introduction: The SAT was established under the Securities and Exchange Board of India Act, 1992. Its primary objective is to hear and dispose of appeals against orders passed by SEBI. It has jurisdiction over the whole of India and operates from Mumbai.
Composition of the SAT: The SAT is headed by a Presiding Officer and has two other members. The Presiding Officer is a retired judge of the High Court, and the other members are experts in the field of law, economics, accountancy, or administration.
Jurisdiction of the SAT: The SAT has the power to hear appeals against orders passed by SEBI under various laws, including the Securities Contracts (Regulation) Act, 1956, the Depositories Act, 1996, and the SEBI Act, 1992. The SAT can also hear appeals against decisions made by stock exchanges and clearing corporations.
Functions of the SAT: The primary function of the SAT is to hear and dispose of appeals against orders passed by SEBI. The SAT has the power to pass orders that can modify, cancel, or uphold the orders passed by SEBI. It can also give directions to SEBI to take specific actions or to refrain from taking any action. Additionally, the SAT can also impose penalties on market intermediaries or participants who violate the securities laws.
Appeals to the SAT: Any person aggrieved by an order passed by SEBI can file an appeal to the SAT within 45 days of receiving the order. The appeal can be filed in the prescribed format along with the prescribed fees.
Conclusion: The Securities Appellate Tribunal is an essential institution for the Indian securities market as it provides a fair and efficient mechanism for resolving disputes related to securities transactions. Its functions and powers are critical in ensuring the proper functioning of the securities market in India. The SAT has contributed significantly to improving the confidence of investors in the securities market by ensuring that their grievances are resolved promptly and efficiently.
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