SAT rejects brokers' appeals, says Sebi show-cause notices not appealable

The Securities Appellate Tribunal dismissed appeals by five brokers in the NSE co-location case, ruling that Sebi's show-cause notices are not appealable and that related administrative decisions lie

The Securities Appellate Tribunal has dismissed appeals filed by five stock brokers challenging show-cause notices issued by the Securities and Exchange Board of India (Sebi) in connection with the National Stock Exchange (NSE) co-location matter.

 

The tribunal held that show-cause notices cannot be construed as “orders” and are therefore not appealable under Section 15T of the Sebi Act.

 

“The matter is at the stage of reply to the show-cause notice. We have held that a challenge to a show-cause notice is not tenable,” the SAT bench said.

 

The tribunal further observed that administrative decisions taken by Sebi — such as the appointment of the Indian School of Business to conduct a reinvestigation into the matter — fall outside its jurisdiction.

 

 

The appeals were filed against separate show-cause notices issued in 2023, relating to alleged violations during the period between June 2010 and April 2014.