Photo of Vasudha Goenka

Vasudha Goenka

Partner in the Dispute Resolution practice at the Mumbai office of Cyril Amarchand Mangaldas with a special focus on Securities Regulatory work. Vasudha has over 16 years of experience, before joining the firm, Vasudha was a Deputy General Manager with SEBI. She can be reached at vasudha.goenka@cyrilshroff.com

SEBI’s power to revisit penalty orders, including Nil penalties, under Section 15-I (3) of the SEBI Act, 1992

Summary: Section 15-I (3) of the SEBI Act, 1992, empowers SEBI to revisit and enhance penalties imposed by the adjudicating officer, including orders where no penalty is imposed, within a period of three months from the date of passing of the order. However, this power can be exercised only if the order passed by the adjudicating officer is erroneous and not in the interests of the securities market. This revisionary power represents a critical component of SEBI’s regulatory framework — it allows the market regulator to modify orders passed by the adjudicating officer.Continue Reading SEBI’s power to revisit penalty orders, including Nil penalties, under Section 15-I (3) of the SEBI Act, 1992

Is SEBI obligated to provide only the documents it relies upon?

Summary: This blog analyses the duty of the Securities and Exchange Board of India (“SEBI”) to disclose documents during regulatory proceedings. It traces the judicial evolution of SEBI’s disclosure obligations and discusses contrasting judicial views on the extent and limits of such obligation.

The Securities and Exchange Board of India (“SEBI”), as a regulator and a quasi-judicial body, is dutybound to act fairly and adhere to the principles of natural justice while conducting proceedings against parties. One such duty is to grant noticees access to the material that form the basis of the findings/ allegations made against them in the show cause notice.Continue Reading Is SEBI obligated to provide only the documents it relies upon?

SEBI’s efforts to curtail front running: Increasing onus on Asset Management Companies

The Securities and Exchange Board of India (“SEBI”) in its 205th board meeting[1] held on April 30, 2024, has approved amendments to the SEBI (Mutual Funds) Regulations, 1996 (“MF Regulations”), to enhance the existing regulatory framework for Asset Management Companies (“AMCs”) for facilitating identification and deterrence of potential market abuse, including front running[2]. As part of the said decision, detailed in its press release dated April 30, 2024, AMCs would be required to put in place an appropriate institutional mechanism, consisting of enhanced surveillance systems, internal control procedures and escalation processes to identify, monitor and address various types of misconduct. Additionally, SEBI’s Board has approved amendments in the relevant regulations to enhance responsibility and accountability of the management of AMCs for the said institutional mechanism and also for AMCs to put in place a whistle-blower mechanism.Continue Reading SEBI’s efforts to curtail front running: Increasing onus on Asset Management Companies

Background

  • SEBI recently notified the SEBI (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023, and issued a Master Circular for Online Resolution of Disputes in the Indian Securities Market (‘ODR Master Circular’), extending the conciliation and arbitration mechanism administered by Market Infrastructure Intermediaries (‘MII’) to all specified intermediaries/ regulated entities. Prior to this, MII’s dispute resolution mechanism only covered stock-brokers, depository participants, listed companies and registrars and transfer agents. Investors embroiled in disputes with any other intermediary did not have recourse to this mechanism, but the ODR Master Circular extends it to other intermediaries to streamline the dispute resolution process. Further, the erstwhile system was largely physical, with some online adaptations brought about during the COVID-19 pandemic. As a progressive measure and in line with the recommendations of the committee constituted by the Niti Aayog under Justice Sikri, the dispute resolution process will now be online.

Continue Reading Resolving Securities Disputes in the Digital Age: A Primer on SEBI’s Master Circular for Online Resolution of Disputes in the Indian Securities Market