Imposition Of Costs On SEBI – A Tussle Between SAT And SEBI

Background

Securities and Exchange Board of India (‘SEBI') is the capital and commodities market regulator of India. SEBI has been constituted under the SEBI Act, 1992 (‘SEBI Act') and possesses wide quasi-legislative, quasi-executive and quasi-judicial powers in relation to the securities markets in India. Securities Appellate Tribunal (‘SAT') is an appellate body constituted under the SEBI Act, to hear appeals against any order passed by SEBI or its adjudicating officers.

This piece examines in detail, legal perspectives in so far as power to impose costs by SAT on SEBI is concerned.

Meaning of Costs

The meaning of costs in civil litigation is provided under Code of Civil Procedure, 1908¹ (‘CPC') as reasonable costs which relate to the fees and expenses of the witnesses, legal fees and expenses incurred or any other expenses incurred in connection with the proceedings. Supreme Court in Subrata Roy Sahara v. SEBI² held that one of the key reason