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SC agrees to hear SEBI's challenge to order quashing Rs 6-crore fine on NSE

The Securities Appellate Tribunal had quashed the SEBI order, saying NSE's actions were not in violation of SECC rules

March 28, 2022 / 01:43 PM IST
Representative Image

Representative Image

The Supreme Court on March 28 sought the National Stock Exchange's response to an appeal filed by the Securities Exchange Board of India (SEBI) that challenges an order that quashed a Rs 6-crore fine imposed on the NSE by the market regulator.

The SEBI has challenged the Securities Appellate Tribunal (SAT) order that quashed the fine slapped on the NSE for allegedly making investments in firms not related to the stock-exchange business.

SEBI had fined NSE for the alleged violation of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) norms of 2018. The fine was levied in 2020.

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While quashing the SEBI's order, the SAT said the investments in question were made by the NSE before the implementation of the 2018 rules, commonly known as SECC (stock Exchanges and Clearing Corporations) Regulations norms.

The rules bar exchanges from investing or deploying funds in entities without SEBI’s permission.

The SAT ruled that the SECC norms of 2018 could not be applied retrospectively and the investments made by NSE could not be said to be in violation of these rules.

Shruti Mahajan
first published: Mar 28, 2022 01:39 pm