In Brief
SEBI sought to set aside the Securities Appellate Tribunal's order that had reversed SEBI's penalty on Mega Corporation Limited, which had restricted the company from accessing the capital market for one year following allegations of fraudulent market practices, misleading advertisements, and share price manipulation. The Supreme Court held that its appellate jurisdiction under Section 15Z is confined to questions of law, not fact. Factual findings by the Tribunal regarding advertisements, profit manipulation, and trading practices could not be interfered with. The Court affirmed the Tribunal's findings while setting aside its obiter observation that cross-examination is an inviolable right in all cases, leaving that broader question open for future determination. The appeal was dismissed.
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