What is Securities Appellate Tribunal (SAT)?

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What is Securities Appellate Tribunal (SAT)? Blog Image


The Securities Appellate Tribunal (SAT) recently quashed a SEBI order banning Future Retail chairperson and some other promoters from the securities market for one year in an insider trading case.

About Securities Appellate Tribunal (SAT)

  • It is formed as a statutory and autonomous body as per the provisions of the Securities and Exchange Board of India (SEBI) Act, 1992.
  • It was mainly established to hear appeals against orders passed by the SEBI or by an adjudicating officer under the SEBI Act. 
  • The SAT hears appeals against the following orders:
    • Orders issued by the Insurance Regulatory and Development Authority of India (IRDAI) in relation to cases filed before it.
    • Orders issued by the Pension Fund Regulatory and Development Authority (PFRDA) in relation to cases filed before it.
    • Hear the orders passed by SEBI.
  • Composition: SAT consists of one Presiding Officer and such number of Judicial and Technical members as the Central Government may determine.
    • The person so appointed as the presiding Officer should meet the following requirements:
  • The retired or sitting judge of the Supreme Court
  • Chief Justice of the High Court
  • Judge of the High Court, who has completed at least seven years of service as a judge in a high court. 
    • Judicial Member: Judge of the High Court for at least five years of service
    • Technical Member:
  • Secretary or an Additional Secretary in the Ministry or Department of the Central Government or any equivalent post in the Central Government or a State Government; or
  • Person of proven ability, integrity, and standing, having special knowledge and professional experience of not less than 15 years in the financial sector, including the securities market, pension funds, commodity derivatives, or insurance.
    • The Presiding Officer and Judicial Members shall be appointed by the Central Government in consultation with the Chief Justice of India or its nominee.
    • Tenure: The tenure for the Presiding Officer and other members will be five years from the date of appointment, and they shall be eligible for re-appointment for another term of maximum five years.
    • However, no presiding officer or member shall hold office after he/she has attained the age of 70.
  • SAT has the same powers as vested in a civil court under the code of civil procedure while trying a suit.
  • Who can make an appeal?
    • Every person aggrieved by the order of the SEBI or adjudicating officer is liable to make an appeal to the SAT.
    • No appeal can be made to the SAT against any order made with the consent of the parties.
  • Appeal against the orders of the SAT:
    • Every person aggrieved by any order or decision of SAT can file an appeal to the Supreme Court.
    • An appeal can only be made on any question of law.

Q1) What is the Securities and Exchange Board of India (SEBI)?

The SEBI is a statutory regulatory body established by the Government of India in 1992. It was given statutory powers through the SEBI Act, 1992. It aims to regulate the securities market in India and protect the interests of investors in securities.

Source: SAT quashes Sebi's order against Biyani, others in insider trading case