Section 15K of SEBI Act, 1992 empowers the Central Government to set up one or more Tribunals, for the purpose making appeals against the orders of SEBI and its adjudicating officers. These tribunals will be known as Securities Appellate Tribunal (SAT). In exercise of the power conferred, the Central Government has set up one Tribunal at Mumbai.
Composition of SAT
SAT shall consist of the following:
- One Presiding officer
- Two other members
The Presiding Officer of SAT shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.
The person to be appointed as the Presiding Officer must;
- Be a sitting or retired Judge of the Supreme Court ; or
- Be a sitting or retired Chief Justice of a High Court ; or
- Be a sitting or retired Judge of a High Court, who has completed atleast 7 years of service.
The person so appointed shall hold office, earlier of the two
- for a period of 5 years ; or
- up to the age of 68 years
The two members of SAT shall be appointed by the Central Government.
The person to be appointed must;
- A person of ability, integrity and standing who has shown capacity in dealing with problems relating to securities market.
- Have qualification and experience of Corporate Law, Securities Law, Finance, Economics or Accountancy.
Person shall hold office, earlier of the two,
- For a period of 5 years ; or
- Upto age of 62 years.
Appeal to SAT [Sec. 15T]
Who can make appeal?
Any person aggrieved,
- By an order of the SEBI ; or
- By an order made by an adjudicating office
may prefer an appeal to SAT.
Exceptions: – No appeal shall lie to SAT from an order made with the consent of the parties.
Time Limit: – The appeal to SAT shall be filed within a period of 45 days from the date of receiving the copy of the order of SEBI or adjudicating officer, as the case may be. However, SAT may entertain an appeal after the expiry of 45 days, if it is satisfied that there was sufficient cause for not filing it within that period.
SAT shall send copy of every order made by it to the following person:
- Concerned Adjudicating Officer
- Parities to Appeal.
Appeal against the Orders of SAT [Sec 15Z]
Any person aggrieved by any decision or order of SAT may file an appeal to the Supreme Court. It may be noted that the appeal can be made only on any 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. However, 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.
Powers of SAT [Sec 15U]
The SAT shall have, for the purpose of discharging their functions under SEBI Act, 1992, the same powers as are vested in a Civil Court under the CPC, 1908, while trying a suit, in respect of the following matters, namely:
- Summoning and enforcing the attendance of any person and examining him on oath.
- Requiring the discovery and production of documents.
- Receiving evidence on affidavits.
- Issuing commissions for the examination of witness or documents.
- Reviewing its decisions.
- Dismissing an application for default or deciding it ex parte.
- Setting aside any order of dismissal of any application for default or any order passed by it ex parte
- Any other matter which may be prescribed.