The Hon'ble Securities Appellate Tribunal
("SAT") passed an order on November 06,
2023, in the matter of Choice Equity Broking Private Limited v.
Multi Commodity Exchange of India Limited [Appeal No.
818 of 2023] wherein it emphasized the importance of
following a fair and transparent procedure for imposing penalties
by the exchanges.
By way of background, the appellant in this case, is a trading
member of the Multi Commodity Exchange of India Limited (MCX). The
appellant's client executed trades on their own using the
appellant's online trading application. Subsequently, MCX
raised concerns, alleging that the trades executed by the client of
the appellant appeared to be abnormal/non-genuine and instructed
the appellant to furnish comprehensive details of the trades and
authenticate the legitimacy of such trades. In adherence to
MCX's directions, the appellant promptly submitted the
requisite information for scrutiny. Surprisingly, and notably
without issuing a
