In Brief
A stock broker challenged its expulsion from NSE membership and the Exchange's withholding of its securities. The Supreme Court upheld the expulsion, finding that membership obligations regarding deposits and capital adequacy continue despite temporary withdrawal of trading facilities. The Court held that operational parameters prescribed by the Exchange through circulars do not require prior SEBI approval. On withheld securities, the Court recognized a limited fiduciary duty requiring the Exchange to act as a prudent person, but rejected a mandatory duty to register securities without the member's request and payment of dues. The Court directed settlement of remaining claims with interest, allowing the Exchange to realize remaining securities and return any surplus to the member.",
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