Sep 30, 2021

SC holds that Consent of SEBI is Not Mandatory for Offence to be Compounded

In the case of Prakash Gupta v. SEBI[1], the Supreme Court held that under Section 24A of the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’), prior consent of SEBI is not a pre-requisite for compounding an offence. However, Securities Appellate Tribunal and Courts should give due consideration to SEBI’s views while adjudicating compounding applications and laid down guidelines for adjudicating of compounding applications.


[1] 2021 SCC Online SC 485.




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