SC imposes Rs 20,000 fine on petitioners challenging SEBI Act

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New Delhi, Nov 5 (UNI) The Supreme Court has strongly disapproved the repeated efforts made by the share brokers to get rid of the turnover fee imposed by SEBI (Securities and Exchange Board of India) under Regulation 10 of SEBI Act.

A bench comprising Justices Ashok Bhan and V S Sirpurkar has also imposed cost of Rs 20,000 each on two petitioners, Veneet Agarwal and another for raising the issue repeatedly, despite the validity of the impugned regulation having been already upheld by the apex court in the BSE brokers forum, Bombay and others, versus SEBI case.

According to the main challenge posed by the petitioner, the impugned regulation was not laid before Parliament as mandated under Section 31 of the SEBI Act and hence the rules and regulations levying turnover fee were illegal and ultra vires of the Constitution.

The apex court in its judgement noted, ''Although the writ petitioner in the present case is different, the repeated attempts are being made to get the impugned rules/regulations invalidated.

This has been adversely commented upon by the Delhi High Court. Once the regulations are declared to have been validly made, it is not open to the cousel for the appellant to argue that the same was not examined from a particular angle and the court should re-examine it.

''It is especially so, when the counsel who is appearing before us had appeared in the earlier cases as well.'' The court concluded by saying, ''For the reasons stated above, we do not find any merit in these appeals and the same are dismissed with costs which are assessed at Rs 20,000 in each of the appeals.'' The apex court upheld the judgements of the Bombay and Uttaranchal High Courts upholding the validity of rules and regulations made under the SEBI Act.

UNI

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