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Pratik Datta: Sebi needs a new regulatory structure

The stock market regulator's adjudication and executive functions should be independent of each other

Pratik Datta

The Securities Appellate Tribunal (SAT) recently held a whole-time member (WTM) of the Securities and Exchange Board of India (Sebi) responsible for misleading the tribunal. The WTM had allowed Sebi to issue a letter falsely claiming that he had passed an order. Actually, he had never passed any such order. This is a serious case of misconduct. But merely blaming the WTM would be akin to missing the forest for the trees. Underlying this incident is a deeper fault in the regulatory architecture of Sebi - the lack of a separate adjudication wing. In Adventz Finance Pvt. Ltd. v Sebi, SAT gave ...