Appeal No.191 of 2011. Case: 1. Pan Asia Advisors Limited, 2. Mr. Arun Panchariya Vs Securities and Exchange Board of India. Securities and Exchange Board of India
Case Number | Appeal No.191 of 2011 |
Counsel | For Appellants: Mr. Navroz Seervai, Senior Advocate with Mr. Zal Andhyarujina and Mrs. Henal Vakharia, Advocates and For Respondent: Mr. Rafique Dada, Senior Advocate with Mr. Prateek Sakseria, Mr. Mihir Mody and Mr. Mobin Shaikh, Advocates |
Judges | N. K. Sodhi, Presiding Officer and P.K. Malhotra, S.S.N. Moorthy, Members |
Issue | Securities and Exchange Board of India Act |
Judgement Date | November 09, 2011 |
Court | Securities and Exchange Board of India |
Order:
N. K. Sodhi, Presiding Officer, (At Mumbai)
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This appeal is directed against an ex-parte order dated September 21, 2011 passed by the whole time member of the Securities and Exchange Board of India (for short the Board) whereby some directions have been issued, among others, to the appellants. The appellants have been debarred with immediate effect from rendering services in connection with securities in the Indian market or dealing with them in any way. The registered intermediaries with the Board have also been directed not to deal with the appellants in any capacity with regard to or in connection with dealings in the Indian securities market. The ex-parte order has been treated as a show cause notice and the appellants have been called upon to file their replies. Since the matter is at the show cause notice stage, we are not inclined to interfere lest any observation made by us prejudices the case of either party. The appellants have yet to respond to the show cause notice and the Board would then be passing a final order after considering their replies. The appellants have challenged the jurisdiction of the Board to initiate proceedings against them and it is contended on their behalf that it has no extra territorial jurisdiction to issue directions to them who operate outside the country. Since we are leaving it to the Board to pass a final order, the learned senior counsel appearing for the appellants wants us to issue a direction to the whole time member to decide the question of jurisdiction as a preliminary issue and only if the Board comes to the conclusion that it has jurisdiction, it should proceed to decide the issues on merits. This, according to the learned senior counsel, is a well settled principle of law. The learned senior counsel appearing for the respondent, however, disputes this...
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