Additional Topics (Chapter 2)
Filling up of vacancies in SAT (Section 15P)
If for any reason other than temporary absence, any vacancy occurs in the office of the Presiding
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Officer or any other Member of a Securities Appellate Tribunal, then the Central Government shall
appoint another person in accordance with the provisions of this Act to fill the vacancy and the
proceedings may be continued before the Securities Appellate Tribunal from the stage at which
the vacancy is filled.
In the event of occurrence of any vacancy in the office of the Presiding Officer of the Securities Ap-
pellate Tribunal by reason of his death, resignation or otherwise, the senior-most Judicial Member of
the Securities Appellate Tribunal shall act as the Presiding Officer until the date on which a new Pre-
siding Officer is appointed in accordance with the provisions of this Act.
Resignation and Removal (Section 15Q)
It lays down that the Presiding Officer or any other Member of a Securities Appellate Tribunal may,
by notice in writing to the Central Government, resign his office.
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However the Presiding Officer or any other Member shall, unless he is permitted by the Central
Government to relinquish his office sooner, continue to hold office, until the expiry of three
months from the date of receipt of such notice or until a person duly appointed as his successor
enters upon his office or until the expiry of his term of office, whichever is the earliest.
The Central Government may, after an inquiry made by the Judge of the Supreme Court, remove the
Presiding Officer or Judicial Member or Technical Member of the Securities Appellate Tribunal after
giving a reasonable opportunity of being heard in the matter.
Cease and Desist order
It is denoting a legally enforceable order from a court or government agency directing someone to
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stop engaging in a particular activity.
If SEBI finds, after causing an inquiry, that any person has violated, or is likely to violate any provi-
sions of this Act, or any rules or regulations made there under, it may pass an order requiring such
person to cease and desist from committing or causing such violation.
SEBI shall not pass such order in respect of any listed public company or a public company which
intends to get its securities listed on any recognized stock exchange unless SEBI has reasonable
grounds to believe that such company has indulged in insider trading or market manipulation.
What if a defaulter under securities law dies, will the legal representative be liable?
SEBI Act lays down that where a person dies, his legal representative shall be liable to pay any sum which the
deceased would have been liable to pay, if he had not died. However, in case of any penalty payable under this
Act, a legal representative shall be liable only in case the penalty has been imposed before the death of the
deceased person.
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Any proceeding for disgorgement, refund or an action for recovery before the Recovery Officer under this
Act, initiated against the deceased before his death, shall be deemed to have been initiated against the legal
representative.
Any proceeding for disgorgement, refund or an action for recovery before the Recovery Officer under this
Act, which could have been initiated against the deceased, may be initiated against the legal representative.
The liability of a legal representative under this section shall be limited to the extent to which the estate of
the deceased is capable of meeting the liability.
Does the civil court has any jurisdiction to entertain a suit under SEBI, Act 1992?
Section 15 of the SEBI Act provides that no civil court shall have jurisdiction to entertain a suit or
proceeding in respect of any matter in which an adjudicating officer (`AO’) is appointed under the
Act or SAT is empowered by or under the Act to determine and no injunction shall be granted by
any court or other authority in respect of any action taken or to be taken in pursuance of any pow-
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er conferred by or under the SEBI Act, 1992.