Finmin notifies Delhi court to speed up trial in Sebi, Depositories Act offences

SEBI

The finance ministry has notified a special court for speedy trial for those who have committed offences under the Securities Exchange Board of India (Sebi) Act, 1992 and Depositaries Act, 1996.

According to the notification, the Chief Justice of Delhi High Court has concurred with the ministry's proposal and has designated  Additional Sessions Judge-03 at Dwarka, Delhi as the Special Court for this purpose.

Section 26A of the Sebi Act and Section 22C of the Depositaries Act empowers the government to notify a special court for the purpose of speedy trial of offences committed under the Act. Similarly, Section 22C of the Depositaries Act empowers the government to designate a court for trial of offence. Both the laws mandate that a special court should be designated in consultation with the chief justice of the high court in whose jurisdiction the special court is to be established.

Violation of these laws have both civil and criminal consequences. While civil consequences are dealt with by SEBI and Securities Appellate Tribunal (SAT), the criminal consequences will have to be tried (undergo a trial) in the court of law. Criminal law demands that any offence must be proved beyond reasonable doubt for conviction, hence the trial process which evaluates the documents on record and the witnesses must be conducted before adjudicating whether a person is guilty or not.