Number of pending appeals at Securities Appellate Tribunal rise 70% in FY19

The number of pending appeals against the stock market regulator’s decisions has risen in recent times. The pile-up comes amid a slowdown in appointments to the Securities Appellate Tribunal (SAT), which hears such appeals.

The number of pending appeals against decisions by the Securities and Exchange Board of India (Sebi) rose 70 per cent over the previous year. It is up from 223 for 2017-18 (FY18) to 379 in 2018-19 (FY19).

The numbers are based on the regulator’s latest annual report, made available on its website following its approval at the last board meeting on June 27. It is uploaded with a lag.

The ratio of appeals dismissed to those decided in favour of Sebi shows a decline. There were 18 appeals in favour of Sebi for every order passed against it in FY18. The ratio has since dropped to 5.5.

“During FY19, 379 appeals were filed before the SAT. Further, 138 appeals were dismissed (ruled in favour of Sebi), while 25 were allowed (ruled against Sebi),” said the annual report. Appeals had been held up in the absence of judges being appointed at the tribunal.

Retired Chief Justice of the Meghalaya High Court, Justice Tarun Agarwala, was appointed in December 2018. Justice M T Joshi is the other member appointed.

The annual report also noted pieces of real estate Sebi had gained over the course of the year. It has acquired a building with a built-up area of 2056.36 sq. m on land measuring 837 square sq. m in Ahmedabad for a new office.

There has also been a transfer of land and building from the National Institute of Securities Markets (NISM) to Sebi. One plot measured 60 acres. The other is 10 acres. Both are located at Patalganga, Raigad.

“All the plots of land are on long term lease (95 years) from the Maharashtra Industrial Development Corporation (MIDC). The lease deed between MIDC and Sebi with NISM as confirming party has been executed on February 8, 2019, followed by registration on February 13, 2019,” it said.

The regulator had earlier purchased IDBI Bank’s Mumbai building in 2018 to meet office space requirements. It now has a presence in 22 states. Sebi currently has 785 employees. This includes 519 men and 266 women.

The regulator also mentioned it had received one sexual harassment complaint during the year. Action was taken based on the recommendation of the Internal Complaints Committee, according to the annual report.