No section 24(1) offence compounding without SEBI consent

Prakash Gupta Vs SEBI (Supreme Court) Conclusion: The offence under Section 24(1) of SEBI Act could not be compounded without SEBI consent as the alleged acts of price rigging and manipulation of the prices of the shares had a vital bearing on investors’ wealth and the orderly functioning of the securities market. SEBI was, therefore, justified in opposing the request for the compounding of the offences. Held: Assessee was being prosecuted for an offence under Section 24(1) of the Securities and Exchange Board of India Act, 1992 (“SEBI Act”). He sought the compounding of the offence unde...