Sebi circulars cannot be challenged in SAT, rules Supreme Court

In what could ease the judicial load on the market regulator, the Supreme Court (SC) has ruled that circulars issued by the Securities and Exchange Board of India (Sebi) cannot be challenged before the Securities and Appellate Tribunal (SAT).  

Circulars, which can be administrative and legislative orders, are not quasi-judicial in nature and hence cannot be appealed in the SAT, the apex court said while pronouncing an order in the case between Sebi and National Depository Services (NDSL).

SAT is a quasi-judicial body that hears appeals against Sebi entities aggrieved by Sebi orders.

“Administrative orders such as circulars issued under the present case