In Brief
The Supreme Court resolved two interconnected questions about the SEBI Act's penalty framework. First, it held that the factors listed in Section 15-J (disproportionate gain, investor loss, repetitive defaults) are illustrative, not exhaustive—Adjudicating Officers may consider other circumstances when determining penalty amounts. Second, it clarified that Section 15-J has never been eclipsed by Sections 15-A to 15-HA (the substantive penalty provisions); these sections must be read harmoniously. The Court distinguished between continuing and repetitive offences, rejected rigid mandatory penalties that would be arbitrary, and emphasized that officers retain discretion to impose fair penalties proportionate to violations. The Court upheld most penalties imposed across multiple appeals involving fraudulent trading, insider trading breaches, and regulatory non-compliance.
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