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Drafting, Pleadings and Appearances · Adjudications and Appeals under SEBI Laws

Securities Appellate Tribunal: Constitution, Composition and Powers

Updated 11 October 2026 · Fact-checked

The Securities Appellate Tribunal (SAT) is a tribunal the Central Government establishes by notification under section 15K of the SEBI Act. It has a Presiding Officer plus Judicial and Technical Members, sits in Benches, follows natural justice instead of the CPC, and has civil court powers on listed matters (section 15U).

Understand Securities Appellate Tribunal: Constitution and Powers

SEBI, stock exchanges and depositories make orders that can seriously affect people. A fair system needs a specialist body to review those orders. The Securities Appellate Tribunal (SAT) is that body. It hears appeals against decisions under the SEBI Act, the Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996.

Establishment (section 15K). The Central Government, by notification, establishes the Tribunal. It exercises the jurisdiction, powers and authority given to it by the SEBI Act or any other law in force. The same notification must specify the matters and places in relation to which the SAT may exercise jurisdiction.

Composition (section 15L). The SAT consists of a Presiding Officer and as many Judicial Members and Technical Members as the Central Government decides by notification. Its jurisdiction is exercised by Benches. The Presiding Officer constitutes a Bench with two or more Judicial or Technical Members. Every Bench must include at least one Judicial Member and one Technical Member. Benches ordinarily sit at Mumbai and may sit at other places the Central Government notifies in consultation with the Presiding Officer. The Presiding Officer may transfer a member from one Bench to another.

Procedure and powers (section 15U). The SAT is not bound by the Code of Civil Procedure, 1908. It is guided by the principles of natural justice and can regulate its own procedure, including where it sits. For its functions under the Act it has the same powers as a civil court trying a suit on listed matters. A proceeding before it is deemed a judicial proceeding. Sections 22B of the SCRA and 23B of the Depositories Act give the same procedure and powers for those Acts.

Staff and other roles. Under section 15S, the Central Government provides officers and employees, who work under the general superintendence of the Presiding Officer. The SAT can also compound certain offences under the three Acts, and it hears appeals against stock exchange refusal to list securities under section 22A of the SCRA.

Key rules to remember

Establishment (s. 15K)
Central Government + notification → SAT; notification also specifies matters and places of jurisdiction
Establishment is by notification, not by the SEBI Board or the court.
Composition (s. 15L)
SAT = Presiding Officer + Judicial Members + Technical Members (number fixed by Central Government notification)
The number of members is not fixed in the section. The Central Government determines it.
Bench rule (s. 15L(2))
Bench = 2 or more members, with at least 1 Judicial Member and 1 Technical Member
The Presiding Officer constitutes the Bench. Benches ordinarily sit at Mumbai.
Procedure (s. 15U(1))
Not bound by CPC, 1908; guided by natural justice; regulates its own procedure
Sections 22B (SCRA) and 23B (Depositories Act) are in the same terms.
Civil court powers (s. 15U(2))
Summoning and examining on oath; discovery and production of documents; evidence on affidavits; commissions; reviewing decisions; dismissal for default or ex parte decision; setting aside such orders; other prescribed matters
Powers are those of a civil court trying a suit, limited to these matters.
Judicial proceeding (s. 15U(3))
Every SAT proceeding is a judicial proceeding; SAT is a civil court for section 195 and Chapter XXVI of the CrPC, 1973
The text refers to sections 193, 196 and 228 of the Indian Penal Code.
Business of Benches (s. 15U(4)-(6))
Presiding Officer distributes business, may transfer cases between Benches, and resolves a difference of opinion by hearing the point himself or referring it to other members; majority decides
A two-member Bench that differs must state the points and refer them to the Presiding Officer.

How to solve Securities Appellate Tribunal: Constitution and Powers questions

Use this method for any question on the constitution, composition or powers of the SAT. Write provision, analysis, conclusion.

  1. 1Identify what is asked: establishment, composition, Bench, procedure, powers, or a specific order.
  2. 2State the governing provision in plain words, for example section 15K for establishment or 15L for composition.
  3. 3List the elements. For composition, name the Presiding Officer, Judicial and Technical Members and the Bench rule.
  4. 4Apply the facts. Check who acted (Central Government or Presiding Officer) and whether the Bench had both member types.
  5. 5For procedure or powers, say the SAT is not bound by the CPC but follows natural justice, then match the facts to the listed civil court powers.
  6. 6Mention parallel provisions in the SCRA and Depositories Act if the facts involve those Acts.
  7. 7Conclude clearly: valid or invalid, within power or outside it.
  8. 8Add a practical point, such as filing before the right Bench or the form and fee for an appeal.

Quickest way: Who, how many, how it decides

When to use it: Use for short-answer or case questions where time is tight.

  1. Who establishes: Central Government, by notification (s. 15K).
  2. Who sits: Presiding Officer, Judicial and Technical Members; every Bench has at least one of each (s. 15L).
  3. Where: ordinarily Mumbai; other places by notification.
  4. How: natural justice, own procedure, no CPC binding (s. 15U).
  5. What powers: civil court powers on the listed matters, including review and ex parte orders.
  6. Close with the conclusion on the facts in one sentence.

Common mistakes in Securities Appellate Tribunal: Constitution and Powers

  • Saying SEBI establishes the SAT.

    Students link everything under the SEBI Act to SEBI.

    Fix: Remember that the Central Government establishes the SAT by notification under section 15K.

  • Saying a Bench can consist of Judicial Members only.

    Students think of the SAT as a court run by judges.

    Fix: Every Bench must include at least one Judicial Member and one Technical Member.

  • Stating that the CPC fully applies to the SAT.

    Students notice the civil court powers and assume the whole CPC applies.

    Fix: Say the SAT is not bound by CPC procedure, is guided by natural justice, and has civil court powers only on listed matters.

  • Fixing the number of members in the answer.

    Students recall a figure from practice or older material.

    Fix: Write that the Central Government determines the number of Judicial and Technical Members by notification.

  • Forgetting who handles Bench business and differences of opinion.

    Students stop reading at section 15L.

    Fix: Add section 15U(4) to (6). The Presiding Officer distributes business, transfers cases and resolves a split by majority.

  • Ignoring the parallel sections in the SCRA and Depositories Act.

    Students treat the SEBI Act as the only source.

    Fix: Note that sections 22B of the SCRA and 23B of the Depositories Act give the same procedure and powers.

Worked examples

Example 1

A Bench of the SAT was constituted by the Presiding Officer with two Technical Members to hear an appeal against a SEBI order. The appellant says the Bench is invalid. Advise.

Show the solution
  1. Provision: under section 15L(2)(b) the Presiding Officer may constitute a Bench with two or more Judicial or Technical Members as he deems fit.
  2. The proviso says every Bench constituted must include at least one Judicial Member and one Technical Member.
  3. Facts: the Bench has two Technical Members and no Judicial Member.
  4. Analysis: the proviso is not met, so the Bench is not constituted as the section requires.
  5. Practical step: the appellant should raise the objection at the earliest, and the Presiding Officer can reconstitute the Bench or transfer members under section 15L(3).

Answer: The appellant is right. A Bench with only Technical Members does not satisfy the proviso to section 15L(2)(b), which needs at least one Judicial Member and one Technical Member.

Example 2

In an appeal before the SAT, the respondent asks it to summon a witness and to set aside its own ex parte order. The respondent also argues that the SAT must follow every rule of the Code of Civil Procedure, 1908. Examine.

Show the solution
  1. Procedure: section 15U(1) says the SAT is not bound by the procedure in the CPC. It is guided by natural justice and can regulate its own procedure.
  2. So the argument that every CPC rule must be followed fails.
  3. Powers: section 15U(2)(a) gives civil court powers of summoning and enforcing attendance and examining on oath.
  4. Section 15U(2)(g) allows setting aside an order of dismissal for default or an order passed ex parte.
  5. Facts: the request to summon a witness and to set aside an ex parte order fits within these powers.
  6. Status: under section 15U(3), the proceeding is a judicial proceeding.

Answer: The SAT can summon the witness and can set aside its ex parte order under section 15U(2). The respondent's argument fails, because the SAT is not bound by CPC procedure and is guided by natural justice.

Exam tips

  • Quote the section numbers 15K, 15L, 15S and 15U in the right places. Do not guess other numbers.
  • Write the Bench rule in full: two or more members, with at least one Judicial and one Technical Member.
  • In case questions, check who acted: Central Government for establishment and notification, Presiding Officer for Benches.
  • List the civil court powers in a short bulleted answer, then link to the facts.
  • Mention the SCRA and Depositories Act parallels and the compounding power when the question spans several Acts.

Practice questions from Adjudications and Appeals under SEBI Laws

Securities Appellate Tribunal: Constitution and Powers in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Securities Appellate Tribunal: Constitution and Powers: frequently asked questions

Who establishes the Securities Appellate Tribunal?

The Central Government establishes it by notification under section 15K of the SEBI Act. The notification also specifies the matters and places in relation to which the SAT may exercise jurisdiction.

What is the composition of a SAT Bench?

The Presiding Officer constitutes a Bench with two or more Judicial or Technical Members. Every Bench must include at least one Judicial Member and one Technical Member. Benches ordinarily sit at Mumbai.

Is the SAT bound by the Code of Civil Procedure?

No. Under section 15U it is not bound by CPC procedure and is guided by natural justice. It does have the powers of a civil court trying a suit on listed matters such as summoning, discovery, affidavits and review.

What happens if two members of a Bench disagree?

They state the points of difference and refer them to the Presiding Officer. He hears the points himself or refers them to one or more other members. The majority of members who heard the case decides, including the first two.

Can the SAT compound offences?

Yes, for certain offences. Section 24A of the SEBI Act, section 23N of the SCRA and section 22A of the Depositories Act allow compounding by a SAT or court. This excludes offences punishable with imprisonment only, or with imprisonment and also with fine.