Recently, the Securities Appellate Tribunal (SAT) quashed the order passed by the Securities and Exchange Board of India (Sebi) canceling Brickwork Ratings' license as a credit rating agency.
About Securities appellate tribunal:
- It is a statutory body established under the provisions of the Securities and Exchange Board of India Act, 1992.
- It hears and disposes of appeals against orders passed by the Securities and Exchange Board of India, the Pension Fund Regulatory and Development Authority (PFRDA) and the Insurance Regulatory Development Authority of India (IRDAI).
- It consists of a Presiding Officer & Two other members.
- The Presiding officer shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.
- It has the same powers as vested in a civil court under the code of civil procedure while trying a suit.
Key facts about SEBI
- It is a statutory regulatory body established by the Government of India in 1992.
- It was given statutory powers through the SEBI Act, of 1992.
- Objective: To regulate the securities market in India and protect the interests of investors in securities.
Q1) What is a statutory body?
A statutory body is an organization or institution that is established and governed by a statute or law enacted by a legislative body. It is created to perform specific functions and duties in the public interest. Statutory bodies usually have a legal mandate, powers, and responsibilities defined by the law that established them.