Securities Appellate Tribunal (SAT) is formed as a statutory and autonomous body as per the provisions of the SEBI Act, 1992 where orders passed by the SEBI are appelled, heard and resolved or by an adjudicating officer under the Act and to exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force.
Securities Appellate Tribunal hears appeals against the following orders:
- Orders issued by the Insurance Regulatory and Development Authority of India (IRDAI) in relation to cases filed before it.
- Orders issued by the Pension Fund Regulatory and Development Authority (PFRDA) in relation to cases filed before it.
- Hear the orders passed by Securities and Exchange Board of India.
Composition of Securities Appellate Tribunal:
SAT consists of the following:
- One Presiding Officer and
- such number of Judicial and Technical Members as the Central Government may determine.
Qualification & Tenure for appointment as Presiding Officer or Member of Securities Appellate Tribunal
The person so appointed as the presiding Officer should meet with the following requirements:
- The retired or sitting judge of the supreme Court
- Chief Justice of the high court
- Judge of the high court, who has completed at least seven years of service as a judge in a high court.
Judicial Member: Judge of High Court for atleast five years of service
- Secretary or an Additional Secretary in the Ministry or Department of the Central Government or any equivalent post in the Central Government or a State Government; or
- Person of proven ability, integrity and standing having special knowledge and professional experience, of not less than 15 years, in financial sector including securities market or pension funds or commodity derivatives or insurance.
*The Presiding Officer and Judicial Members shall be appointed by the Central Government in consultation with the Chief Justice of India or its nominee.
The tenure for Presiding Officer or the Judicial or Technical Member will be five years from the date of appointment and shall be eligible for re-appointment for another term of maximum five years.
However, no presiding officer or the Judicial or Technical Member shall hold office after he has attained the age of 70 years.
Powers of SAT:
The Securities Appellate Tribunal shall have the same powers as vested in a civil court under the code of civil procedure while trying a suit, with respect of the following matters namely:
- Enforce and summon the attendance of any person
- Require the discovery and production of documents
- Receive evidence on affidavits
- Issue commissions for the examination of the documents or witnesses
- Dismiss an application for default or deciding it ex-parte
- Set aside any order or dismissal of any application for default or any other order passed by it ex-parte
- Any other matter as and when prescribed.
Appeal to SAT
Any person aggrieved by an order of SEBI made, under this act , or by an order made by an adjudicating officer under this act, may prefer an appeal to a SAT having jurisdiction in the matter
- Every appeal shall be filed within 45 days from the date on which a copy of the order made by SEBI or the adjudicating officer is received by him and accompanied by such form and fees as may be prescribed.
- The SAT may entertain an appeal after the expiry of the said period of 45 days if it is satisfied that there was sufficient cause for not filing it within that period. The appeal shall be made in 3 copies, with additional copies for each additional Appeal shall be signed by the authorized person.
- On receipt of the appeal, the SAT may, after giving the parties to the appeal an opportunity of being heard, pass such order thereon as it thinks fit, confirming, modifying or setting aside the order appealed against.
SAT shall dispose of the appeal within 6 months from the date of receipt of the appeal.
Jurisdiction of Civil Court
No civil court has jurisdiction to entertain any suit or proceeding in respect of any matter which an adjudicating officer appointed under this Act or Securities Appellate Tribunal under this Act is empowered by or under this Act to determine and no injunction shall be granted by any Court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.
Appeal against the order of SAT
- Any person aggrieved by any decision or order of the SAT can file an appeal to the Supreme Court. The appeal can be filed only on a question of law. The appeal shall be filed within 60 days from the date of receiving a copy of the decision or order of SAT.
- The supreme court may allow a further period of 60 days for making an appeal, if it is satisfied that the applicant was prevented by sufficient cause from filing the appeal within the first 60 days.