SEBI vs brokers : SC admits SEBI appeal
24 Jan 2007
There's
some good news for SEBI in a long-drawn battle with the
National Stock Exchange Members Association. Its appeal
has been admitted in the Supreme Court, reports CNBC-TV18.
Rewind to November 2005, in the Delhi High Court, market regulator SEBI lost a case with the National Stock Exchange Members Association, which opposed paying additional money for more than one registration.
These brokers allegedly argued that if they paid for one SEBI registration, they did not need to pay for any more. That's even if they operated on more than one exchange. The High Court ruled in favour of the brokers.
Delhi High Court ruling stated, "We clarify that only a single registration with Sebi is required even if a broker has membership of, and functions from several stock exchanges."
That's not all. It asked the regulator to refund money collected for more than one registration. Sebi subsequently appealed in the Supreme Court. That's where the tables turned - at least partially.
The Supreme Court has finally admitted SEBI's appeal. Sources say the court has said that until the case is finalised a status quo will be maintained. They explain that implies that for now, the Delhi High Court ruling will temporarily not be operational. The case is expected to come up for hearing in the Supreme Court in a week's time.
