SC to decide on Sebi's conflicting directives

SAT had criticized Sebi for not following consistent approach in all cases

- Pavan Burugula

The Supreme Court is expected to take a call on the validity of the Securities and Exchange Board of India (Sebi)’s conflicting directives. The markets regulator had moved the apex court urging it to review the rulings by an appellate tribunal, overturning its orders pertaining to some key developments.

The cases are expected to be heard by a two-member bench, comprising Justices Sanjiv Khanna and S. V. N. Bhatti. The SC had served notices to all the parties on 7 August, according to the court website.

According to existing rules, two Sebi officers of varying seniority levels—adjudication officers and whole-time members (WTMs)—can issue quasi-judicial orders. While adjudication officers handle general orders, WTMs issue orders concerning matters of larger investor interest. In certain instances, both WTMs and AOs initiate proceedings against the accused.