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

Rahul Mehta Securities Ltd. appeals to the Securities Appellate Tribunal (SAT) against a SEBI order. The company argues that SAT must follow the detailed procedure of the Code of Civil Procedure, 1908 while hearing the appeal. Under the SEBI Act, 1992, which statement about SAT's procedure is correct?

SAT is not bound by the Code of Civil Procedure, 1908. It is guided by the principles of natural justice and has power to regulate its own procedure, including where it sits, subject to the Act and the rules.

  1. ASAT must strictly follow the Code of Civil Procedure, 1908 in every respect
  2. BSAT is not bound by the Code of Civil Procedure but is guided by the principles of natural justiceCorrect
  3. CSAT is bound by neither the Code of Civil Procedure nor the principles of natural justice
  4. DSAT must follow the Code of Criminal Procedure, 1973 for all its procedure

Explanation

Section 15U(1) of the SEBI Act says SAT is not bound by the procedure laid down by the Code of Civil Procedure, 1908, but is guided by the principles of natural justice. It can regulate its own procedure, including places of sitting. The option requiring strict CPC compliance contradicts this.

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