Context: Most of the matters that have come up at the Securities Appellate Tribunal (SAT) in the past few weeks have been adjourned due to non-availability of the Bench, with no final hearings.

About Securities Appellate Tribunal (SAT)

• Body: Statutory body

• Developed under: Section 15K of the Securities and Exchange Board of India (SEBI) Act. 

• It works under the jurisdiction of the Ministry of Finance & has only one bench which sits at Mumbai.

• It has the same powers as vested in a civil court & if any person feels aggrieved by SAT’s decision or order can appeal to the Supreme Court.

• Appeal against:  It was mainly established to hear an appeal against the order passed by the SEBI or by an adjudicating officer under the SEBI Act.

• Currently, SAT hears appeals against orders passed by the SEBI, the Insurance Regulatory and Development Authority of India and the Pension Fund Regulatory and Development Authority.

SAT was setup to hear and dispose of appeals against orders passed by the:

1. Securities and Exchange Board of India or by an adjudicating officer under the Act.

2. Pension Fund Regulatory and Development Authority (PFRDA) under the PFRDA Act, 2013.

3. Insurance Regulatory Development Authority of India (IRDAI) under the Insurance Act, 1938.

4. General Insurance Business (Nationalization) Act, 1972.

5. Insurance Regulatory and Development Authority Act, 1999 and the Rules and Regulations framed thereunder.

• Compositions: It would consist of the one presiding officer and other 2 members.

• The Central Government will appoint the presiding Officer in discussion with the chief justice of India or nominee. The person so appointed as the presiding Officer should meet with the following requirements:

• The retired or sitting judge of the supreme court

• The retired or sitting judge of the high court

• The retired or sitting judge of the high court, who has completed at least seven years of service as a judge in a high court.

• The Central Government will appoint the two members, should possess the following qualities:

• The member should be capable of dealing with problems related to the securities market.

• The member should possess qualification and experience related to corporate law, securities laws, economics, finance or accountancy.

• Tenure: Presiding Officer: 5 years from the date of appointment or re-appointment.

• Members:  5 from the date of appointment or re-appointment.

• Power: SAT will have the same powers as vested in a civil court under the code of civil procedure while trying a suit, with respect of the following matters namely:

• Enforce and summon the attendance of any person

• Require the discovery and production of documents

• Receive evidence on affidavits

• Issue commissions for the examination of the documents or witnesses

• Dismiss an application for default or deciding it ex-parte

• Set aside any order or dismissal of any application for default or any other order passed by it ex-parte

• Any other matter as and when prescribed.

• Eligibility for filing an appeal: Every person aggrieved by order of the Securities and Exchange Board of India or adjudicating officer is liable to make an appeal to the SAT.

• Note: No appeal can be made to the SAT against any order made with the consent of the parties.

• Time Limit: Every appeal to the  SAT should be filed within 45 days from the day on which a copy of the order passed by the SEBI or adjudicating office is received.

• Appear before SAT: As per the SEBI Act, any authorised person is a Company Secretary, Chartered Accountant (CA), Cost Accountant or Legal Practitioner can appear before Securities Appellate Tribunal (SAT).

• Appeal against the orders of SAT: Every person aggrieved by any order or decision of Securities Appellate Tribunal can file an appeal to the supreme court. The appeal should be made within 60 days from the date of receiving a copy of the order or decision of SAT.