SAT CAN HEAR APPEALS WITHOUT THE PRESENCE OF A TECHNICAL MEMBER

The Securities Appellate Tribunal ruled that it is empowered to hear and decide matters in absence of a technical member. Thus, SAT will not be rendered defective on account in absence of a technical member.

Currently, a technical member resigned from his office on 31st March 2021. SAT presently comprises the Presiding officer and a judicial member.

The question was raised by SEBI whether SAT can function without a technical member. The markets regulator argued that as per sec 15L (2)(b) of the SEBI Act, 1992, SAT bench should consist of 1 technical member, without whom the tribunal should not hear appeals. To which SAT noted that Sec15 L(2)(b) was creating mischief.

19th May 2021

The Bench opined that a technical member is to bring specialised knowledge and to assist the bench on issues. Thus cannot be said, that without a technical member, SAT cannot function. Moreover, the Central government has not yet taken any measures to appoint anybody for the position. Therefore, called upon the centre to fill up the position and also to make necessary amendments to sec 15L (2)(b). 

Lastly, the bench asked to send a copy of this order to the Registrar General of the SC.