Between 2000 and 2006, majority of the Securities and Exchange Board of India (Sebi)?s orders against corporates, promoters and others were upheld by the Securities Appellate Tribunal (SAT).
Out of the 676 appeals filed against Sebi?s orders in the said seven-year period, nearly 81% of them were upheld by SAT. In 2006 alone, the rate is nearly 90%, according to a research done by the Enforcement Department of Sebi. These figures do not include cases where the aggrieved party chose not to file an appeal before the Tribunal.
As a large number of Sebi cases are not appealed, the said percentage is under-stated, since the potentially aggrieved parties did not filed an appeal, the department said.
According to the research, during the period out of the 676 orders only 124 appeals were allowed. Around 246 cases were dismissed and 260 cases were upheld but penalty reduced.
Besides, nearly 46 cases were sent back to Sebi for fresh hearing, which will be considered in subsequent years if challenged, it added.
Though the reduction of penalty is considered as upholding the rationale and merits of the case, the same were considered as upheld in favour of Sebi.