Abhiraj Ltd., an Indian company, started functioning in 1999 and was registered under the Companies Act, 1956. The Securities and Exchange Board of India performed one of its functions and conducted investigations against Abhiraj Ltd. The investigations resulted into the fact that the company did not follow the proper procedure. Therefore SEBI imposed penalty upon the company. (a) Identify the function being performed by SEBI. (b) Can Abhiraj Ltd. appeal against SEBI decision? If yes, where?

Question

Accepted Answer

(a) The function being performed by SEBI is its investigatory and enforcement function. SEBI conducted investigations against Abhiraj Ltd. and found that the company did not follow the proper procedure, and therefore imposed a penalty. This falls under SEBI's quasi-executive function where it conducts investigation and enforcement action against entities violating securities regulations.

(b) Yes, Abhiraj Ltd. can appeal against the SEBI decision. The appeal lies to the **Securities Appellate Tribunal** (SAT), which is a three-member tribunal. A second appeal can lie directly to the **Supreme Court** of India.