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Orbit Pharma Ltd., a listed company, issued shares to the public and is accused of violating SEBI rules on disclosures to investors. Orbit wants to challenge the penalty order passed by SEBI. Which statement correctly describes the forum and the regulatory roles involved?

A SEBI penalty order is appealed to the Securities Appellate Tribunal, and a further appeal lies to the Supreme Court. NCLAT hears appeals from NCLT, while the Registrar and CCI have no appellate role over SEBI orders.

  1. AAppeal lies to NCLAT, because the company is registered under the Companies Act, 2013
  2. BAppeal lies to the Securities Appellate Tribunal, with a further appeal to the Supreme CourtCorrect
  3. CAppeal lies to the Registrar of Companies, who supervises listed companies
  4. DAppeal lies to the Competition Commission of India, as it oversees capital market conduct

Explanation

Orders of SEBI are appealed to the Securities Appellate Tribunal, and a further appeal lies to the Supreme Court. NCLAT hears appeals from NCLT, not from SEBI. The Registrar of Companies is not an appellate body for SEBI orders, and CCI regulates competition, not capital market conduct.

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