Streamlining the disciplinary process

There is a need for consistency in the adjudicating frameworks of Sebi and other market regulators to ensure fair financial market outcomes

On November 6, in the case of Choice Equity Broking Private Limited vs. Multi Commodity Exchange of India Limited, the Securities Appellate Tribunal (SAT) set aside an order of a market infrastructure institution (MII), imposing a monetary penalty on a trading member. The SAT ruled the order was in gross violation of the principles of natural justice, as it was issued without issuing a show cause notice and without an opportunity for a hearing. It directed the MII to institute a procedure for penalty proceedings against its members. This has a lesson for MIIs. All of them have scope for