Securities Appellate Tribunal (SAT)

The absence of a full Bench at the Securities Appellate Tribunal (SAT) has crippled its functioning leading to delays and disruptions.

About Securities Appellate Tribunal (SAT):

• The SAT was established in 1992 under the provisions of Section 15K of the SEBI Act.
• It is an autonomous statutory body that hears and decides appeals against orders passed by the Securities and Exchange Board of India (SEBI).
• It also hears appeals against orders passed by the Insurance Regulatory Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA).
• It also hears appeals against stock exchanges and depositories.
• Power: It shall have the same powers as vested in a civil court under the code of civil procedure while trying a suit.

Composition of Securities Appellate Tribunal:

• One Presiding Officer and such number of Judicial and Technical Members as the Central Government may determine.
• The Central Government in consultation with the Chief Justice of India or its nominee shall appoint the Presiding Officer and Judicial Members.

Qualification & Tenure for appointment as Presiding Officer or Member:

Presiding Officer:

• The person so appointed as the presiding Officer should meet with the following requirements:
  • The retired or sitting judge of the supreme Court
  • Chief Justice of the high court
  • Judge of the high court, who has completed at least seven years of service as a judge in a high court.

Members

• Judicial Member: Judge of High Court for atleast five years of service.
• Technical Member: Secretary or an Additional Secretary in the Ministry or Department of the Central Government or any equivalent post in the Central Government or a State Government; or
  • Person of proven ability, integrity and standing having special knowledge and professional experience, of not less than 15 years, in financial sector including securities market or pension funds or commodity derivatives or insurance.

Tenure:

• The tenure for Presiding Officer or the Judicial or Technical Member will be five years from the date of appointment and shall be eligible for re-appointment for another term of maximum five years.
• However, no presiding officer or the Judicial or Technical Member shall hold office after he has attained the age of 70 years.

Who can make an appeal?

• Any person aggrieved by an order of SEBI made, under this act , or by an order made by an adjudicating officer under this act, may prefer an appeal to a SAT having jurisdiction in the matter.

Appeal against the orders of the SAT:

• Any person aggrieved by any decision or order of the SAT can file an appeal to the Supreme Court.

The appeal can be filed only on a question of law