Sebi’s success rate at Tribunal hits new record of 94%

New Delhi: Capital market regulator Sebi’s success rate on appeals filed against its orders before the Securities Appellate Tribunal (SAT) has hit a new record high of 94 per cent. With stronger regulatory teeth, the Securities and Exchange Board of India (Sebi) has been stepping up measures to deal with violations and illicit money pooling activities. While its orders can be challenged before SAT by the affected parties, the latest data shows that the Tribunal’s decision went in Sebi’s favour in 94 per cent cases during 2015-16.

This exceeds Sebi’s success rate of nearly 90 per cent in the previous fiscal 2014-15, as per the data compiled by the regulator.

As many as 253 appeals filed against Sebi orders were dismissed by the Tribunal in 2015-16, much higher than 103 pleas rejected in 2014-15.

On the other hand, 27 appeals against Sebi orders were allowed in 2015-16 by the Tribunal, as against 17 in the preceding financial year. Besides, 4 appeals were modified during 2015-16, as against 17 in preceding year. A large number of 136 appeals were actually withdrawn in the latest fiscal, up from just 32 in 2014-15.

The number of total appeals stood at 420 in 2015-16, up from 162 in 2014-15. Sebi’s success rate has been consistently improving in the recent years at SAT. It stood at 88 per cent in 2013-14, as against 70 per cent in the year 2012-13.

SAT is a statutory body established under the provisions of the Sebi Act, 1992, to hear and dispose of appeals against orders passed by the regulator.

Currently, SAT has only bench in Mumbai. It has one presiding officer and two members. The government is now planning to amend the Sebi Act with an aim to increase the members and benches of SAT, a move that would help further expedite the cases involving the alleged violations relating to the capital markets.

A proposal in this regard would soon be placed before the Cabinet for its approval, sources have said.The proposed amendment contains an enabling provision
giving powers to the presiding officer to constitute more benches.

Having more benches would help in expeditious disposal of cases related to the securities market. While presenting the Budget 2016-17 in the Lok Sabha,
Finance Minister Arun Jaitley had proposed “to amend the Sebi Act 1992 in the coming year to provide for more members and benches of SAT”.

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