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Indian Economy

Securities Appellate Tribu­nal

  • 17 Feb 2021
  • 4 min read

Why in News

Recently, the Securities Appellate Tribu­nal (SAT) stayed the order passed by Securities and Exchange Board of India (SEBI) that had put a one-year ban on a retail company Chairperson and some other promoters from the securities market.

Key Points

  • About:
    • SAT is a statutory body established under the provisions of Section 15K of the SEBI Act, 1992.
  • Location:
    • Mumbai.
  • Composition:
    • SAT consists of a Presiding Officer and Two other members.
      • The Presiding officer of SAT shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.
  • Powers:
    • It has the same powers as vested in a civil court. Further, if any person feels aggrieved by SAT’s decision or order can appeal to the Supreme Court.
  • Functions:

Securities and Exchange Board of India

  • About:
    • SEBI is a statutory body established in 1992 in accordance with the provisions of the SEBI Act, 1992.
    • Initially, SEBI was a non-statutory body. In April, 1988 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.
      • The term capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested.
  • Headquarters:
    • The headquarters of SEBI is situated in Mumbai.
    • The regional offices of SEBI are located in Ahmedabad, Kolkata, Chennai and Delhi.
  • Composition:
    • All decisions taken by SEBI are collectively taken by its Board that consists of a Chairman and eight other members.
    • SEBI also appoints various committees, whenever required to look into the pressing issues of that time.
  • Function:
    • To protect the interests of investors in securities and to promote and regulate the securities market.
      • Securities are tradable financial instruments used to raise capital in public and private markets.
      • There are primarily three types of securities: equity—which provides ownership rights to holders; debt—essentially loans repaid with periodic payments; and hybrids—which combine aspects of debt and equity.
    • Registering and regulating the working of stock brokers, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner.
    • SEBI is a quasi-legislative, quasi-judicial and quasi-executive body.
      • It can draft regulations, conduct inquiries, pass rulings and impose penalties.

Source:IE

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