A bench headed by Justice Arijit Pasayat asked for the submissions while hearing a case filed by Sebi, challenging the power of Securities Appellate Tribunal to modify the nature of penalty imposed by it on stock brokers who violated the Sebi Act 1992.
SAT had earlier converted the penalty of suspension of certificate of registration issued by Sebi to sub-brokers Saikala Associates and Shipla Stock Brokers Pvt Ltd to monetary penalty of Rs 300,000 and Rs 100,000, respectively.
Sebi's contention was that instead of modifying the quantum of penalty, which it was empowered to do under Section 15T(4)
of the Act, SAT had imposed monetary penalty for violations which it was not entitled to do.
Besides, it had observed that imposition of penalty would not be treated as stigma.
"The impugned order of SAT converting the penalty of suspension of certificate of registration as imposed by Sebi into monetary penalty is without jurisdiction and unauthorised by the Act and creates serious consequences and adversely affects the interest of the investors in the securities market," Sebi said in its petitions.
The Act does not envisage any monetary penalty against an intermediary, who had unauthorisedly acted as an intermediary without any registration.
