In Brief
The Supreme Court addressed two referred questions concerning the discretionary power of SEBI's Adjudicating Officer to determine penalty quantum under Sections 15J and 15A-15HA of the SEBI Act. The Court held that the factors listed in Section 15J(a)-(c) (disproportionate gain, investor loss, repetitive nature) are illustrative, not exhaustive, and the Officer may consider other relevant circumstances. Section 15J was never eclipsed by the penalty provisions in Sections 15A-15HA; this was clarified by the 2017 Explanation. The Court approved penalties for synchronized trading, insider trading violations, and non-compliance with information summons, rejecting challenges on grounds of proportionality, dismissing appeals and upholding the Appellate Tribunal's orders affirming various penalties."
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