Disputes

Under the lens for deals with Vishvapradhan, Roys say Sebi’s powers are unconstitutional

The NDTV promoters have challenged the market regulator’s authority in a case full of twists and turns.
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Prannoy Roy, co-founder, NDTV;Vipin Kumar/Hindustan Times/Getty Images
A quarter of a century regulating the securities market and numerous enforcement actions later, the Securities and Exchange Board of India (Sebi) is facing an existential question. Are its sweeping powers under Section 11 of the Sebi Act within the framework of the Constitution of India? Or are they ultra vires?Raising this question are senior journalists Prannoy Roy and Radhika of conduct, which required compliance “with all applicable laws, rules and regulations and engage in and promote honest ethical conduct free from fraud or deception”, was false. So, Sebi alleged the Roys and their company had violated the provisions of the Securities Contracts (Regulation) Act, too.Over to the Delhi High Court now, which has posted the matter to November 27.
A quarter of a century regulating the securities market and numerous enforcement actions later, the Securities and Exchange Board of India (Sebi) is facing an existential question. Are its sweeping powers under Section 11 of the Sebi Act within the framework of the Constitution of India? Or are they ultra vires?Raising this question are senior journalists Prannoy Roy and Radhika of conduct, which required compliance “with all applicable laws, rules and regulations and engage in and promote honest ethical conduct free from fraud or deception”, was false. So, Sebi alleged the Roys and their company had violated the provisions of the Securities Contracts (Regulation) Act, too.Over to the Delhi High Court now, which has posted the matter to November 27.

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