 "Sebi gets back discretionary powers on penalties")
The Finance Bill 2017 has inserted an explanation that does away with the ambiguity regarding the discretionary powers of the Securities and Exchange Board of India (Sebi) in deciding the quantum of penalty levied against companies. This will provide relief to several companies reeling under heavy penalties post the Supreme Court’s Roofit judgment in 2015.
The SC had, in its ruling in the matter of Roofit Industries in November 2015, said that Sebi had no discretionary power under Section 15J of the SEBI Act, 1992 to reduce penalties imposed on companies. Following the judgment, penalty of crores of rupees was
