SAT upholds majority of SEBI orders

Contrary to the belief, Securities Appellate Tribunal (SAT) has upheld majority of the orders passed by market regulator Securities and Exchange Board of India (SEBI).Over 80% of Sebi orders challenged before SAT are upheld, an internal research of Sebi orders between 2000 to 2006 by its Enforcement Department revealed."Over the past 7 years, cases where SEBI's orders are upheld is over 80%. In the year 2006 the rate is nearly 90%," said the SEBI study `Appeals before the Securities Appellate Tribunal.'In the period from 2000 to 2006, out of 676 cases, appeals were allowed in only 124 cases, while 246 cases were dismissed and 260 cases were upheld but penalty reduced, the study said.Besides 46 cases were remanded back to SEBI for fresh hearing. The research considered appeals where SAT reduced the penalty as upheld in favour of SEBI.As reduction of penalty is considered as upholding the rationale and merits of the case, the same are considered as upheld in favour of SEBI, though the quantum of penalty is reduced, the study said.