CS Professional · Drafting, Pleadings and Appearances · Adjudications and Appeals under SEBI Laws
Meridian Securities Ltd, a Mumbai broker, is served with a notice in an adjudication proceeding under the SEBI Act. Before the hearing, it files a civil suit in a city civil court seeking to restrain the adjudicating officer from proceeding. Under the SEBI Act, what is the position on this suit?
The civil court cannot entertain the suit. Section 15Y of the SEBI Act excludes civil court jurisdiction over matters an adjudication officer or the Securities Appellate Tribunal can decide, and it bars injunctions against action under the Act. Section 32 does not override this bar.
- AThe civil court may entertain the suit because Section 32 keeps other laws applicable
- BThe civil court has no jurisdiction over a matter the adjudication officer is empowered to determine, and no injunction can be granted against action under the ActCorrect
- CThe civil court may grant an injunction but only for thirty days
- DThe civil court may hear the suit only if the broker is a depository participant
Explanation
Section 15Y bars civil courts from entertaining any suit or proceeding on a matter that an adjudication officer or the Securities Appellate Tribunal is empowered to determine. It also bars injunctions against action taken or to be taken under the Act. Section 32 only makes the Act additional to other laws; it does not revive civil court jurisdiction.
Did you get it right without looking?
One question tells you little. A timed set on Adjudications and Appeals under SEBI Laws shows your real accuracy, how long you take and where you lose marks.
More Adjudications and Appeals under SEBI Laws questions
- A depository participant, Sagar Depository Services, is aggrieved by a SAT order passed in a matter arising under the Depositories Act, 1996…
- Kaveri Industries is aggrieved by a SAT order that confirmed a SEBI finding of fact that it had traded on non-public information. Kaveri wan…
- Rahul Mehta Securities Ltd. appeals to the Securities Appellate Tribunal (SAT) against a SEBI order. The company argues that SAT must follow…
- Kaveri Brokers' appeal against a SAT order was due before the Supreme Court on 1 May, but the managing partner was hospitalised in a critica…
- Meridian Securities Ltd, a Mumbai broker, receives a copy of a SAT order against it on 10 March. It wishes to appeal to the Supreme Court un…
- Arvind Textiles Ltd is penalised by SEBI. It also faces action under another statute for the same conduct and argues that the SEBI Act displ…