In Brief
The Supreme Court dismissed SEBI's appeal against the Securities Appellate Tribunal's order that had set aside SEBI's restrictions on Mega Corporation Limited from accessing the capital market. The Court clarified that appeals under Section 15Z of the SEBI Act are limited to questions of law only, not facts. Since the Tribunal's findings on misleading advertisements and share price manipulation were based on factual inferences from evidence, they did not raise questions of law. The Court affirmed the Tribunal's freedom to interpret regulations and evolve consistent legal principles. Regarding cross-examination rights in SEBI proceedings, the Court left this question open for future determination, setting aside the Tribunal's general pronouncement that cross-examination is an inviolable right in all cases.
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