Compliance Officer Not Liable for Fraudulent Accounts Without Proof of Involvement: SAT

V. Shankar Vs SEBI (SAT Mumbai) The Securities Appellate Tribunal (SAT), Mumbai bench, on May 5, 2025, delivered a significant order in the case of V. Shankar vs. Securities and Exchange Board of India (SEBI). This order pertains to an appeal filed by V. Shankar against an order passed by the Adjudicating Officer (AO) of SEBI on March 22, 2022. The AO’s order had imposed a penalty of ₹10 lakhs on V. Shankar under Section 15HA of the SEBI Act, 1992, for alleged violations of Sections 68 and 77A of the Companies Act, 1956, read with Regulations 3 and 4 of the SEBI (Prohibition of Fraudule...