4
[15K. Establishment of Securities Appellate Tribunal.—(1) The Central Government shall, by
notification, establish a Tribunal to be known as the Securities Appellate Tribunal to exercise the
jurisdiction, powers and authority conferred on it by or under this Act or any other law for the time being
in force.
(2) The Central Government shall also specify in the notification referred to in sub-section (1), the
matters and places in relation to which the Securities Appellate Tribunal may exercise jurisdiction.]
5
[15L. Composition of Securities Appellate.—(1) The Securities Appellate Tribunal shall consist of
a Presiding Officer and such number of Judicial Members and Technical Members as the Central
Government may determine, by notification, to exercise the powers and discharge the functions conferred
on the Securities Appellate Tribunal under this Act or any other law for the time being in force.
(2) Subject to the provisions of this Act,—
(a) the jurisdiction of the Securities Appellate Tribunal may be exercised by Benches thereof;
(b) a Bench may be constituted by the Presiding Officer of the Securities Appellate Tribunal with
two or more Judicial or Technical Members as he may deem fit:
Provided that every Bench constituted shall include at least one Judicial Member and one Technical
Member;
(c) the Benches of the Securities Appellate Tribunal shall ordinarily sit at Mumbai and may also sit
at such other places as the Central Government may, in consultation with the Presiding Officer, notify.
(3) Notwithstanding anything contained in sub-section (2), the Presiding Officer may transfer a
Judicial Member or a Technical Member of the Securities Appellate Tribunal from one Bench to another
Bench.]
1. Ins. by Act 27 of 2014, s. 17 (w.e.f. 20-4-2007).
2. Ins. by Act 13 of 2018, s. 186 (w.e.f. 8-3-2019).
3. Subs. by Act 7 of 2017, s. 148, for “APPELLATE TRIBUNAL” (w.e.f. 1-3-2017).
4. Subs. by s. 148, ibid., for section 15K (w.e.f. 1-3-2017).
5. Subs. by s.148, ibid., for section 15L (w.e.f.1-3-2017)
21
1
[15M. Qualification for appointment as Presiding Officer, Judicial Member and Technical
Member.—A person shall not be qualified for appointment as the Presiding Officer or a Judicial Member
or a Technical Member of the Securities Appellate Tribunal, unless he—
(a) is, or has been, a Judge of the Supreme Court or a Chief Justice of a High Court or a Judge of
High Court for at least seven years, in the case of the Presiding Officer; and
(b) is, or has been, a Judge of High Court for at least five years, in the case of a Judicial Member;
or
(c) in the case of a Technical Member––
(i) is, or has been, a Secretary or an Additional Secretary in the Ministry or Department of the
Central Government or any equivalent post in the Central Government or a State Government; or
(ii) is a person of proven ability, integrity and standing having special knowledge and
professional experience, of not less than fifteen years, in financial sector including securities
market or pension funds or commodity derivatives or insurance.
15MA. Appointment of Presiding Officer and Judicial Member.—The Presiding Officer and
Judicial Members of the Securities Appellate Tribunal shall be appointed by the Central Government in
consultation with the Chief Justice of India or his nominee.
15MB. Search-cum-Selection Committee for appointment of Technical Members.—(1) The
Technical Members of the Securities Appellate Tribunal shall be appointed by the Central Government on
the recommendation of a Search-cum-Selection Committee consisting of the following, namely:––
(a) Presiding Officer, Securities Appellate Tribunal—Chairperson;
(b) Secretary, Department of Economic Affairs—Member;
(c) Secretary, Department of Financial Services—Member; and
(d) Secretary, Legislative Department or Secretary, Department of Legal Affairs—Member.
(2) The Secretary, Department of Economic Affairs shall be the Convener of the Search-cumSelection Committee.
(3) The Search-cum-Selection Committee shall determine its procedure for recommending the names
of persons to be appointed under sub-section (1).
15MC. Vacancy not to invalidate selection proceeding.—(1) No appointment of the Presiding
Officer, a Judicial Member or a Technical Member of the Securities Appellate Tribunal shall be invalid
merely by reason of any vacancy or any defect in the constitution of the Search-cum-Selection
Committee.
(2) A member or part time member of the Board or the Insurance Regulatory and Development
Authority or the Pension Fund Regulatory and Development Authority, or any person at senior
management level equivalent to the Executive Director in the Board or in such Authorities, shall not be
appointed as Presiding Officer or Member of the Securities Appellate Tribunal, during his service or
tenure as such with the Board or with such Authorities, as the case may be, or within two years from the
date on which he ceases to hold office as such in the Board or in such Authorities.
(3) The Presiding Officer or such other member of the Securities Appellate Tribunal, holding office
on the date of commencement of Part VIII of Chapter VI of the Finance Act, 2017 (7 of 2017) shall
continue to hold office for such term as he was appointed and the other provisions of this Act shall apply
to such Presiding Officer or such other member, as if Part VIII of Chapter VI of the Finance Act, 2017
had not been enacted.]
1. Subs. by Act 7 of 2017, s. 148, for section 15M (w.e.f. 1-3-2017).
22
1
[15N. Tenure of office of Presiding Office, Judicial or Technical Members of Securities
Appellate Tribunal.—The Presiding Officer or every Judicial or Technical Member of the Securities
Appellate Tribunal shall hold office for a term of five years from the date on which he enters upon his
office, and shall be eligible for reappointment for another term of maximum five years:
Provided that no Presiding Officer or the Judicial or Technical Member shall hold office after he has
attained the age of seventy years.]
15-O. Salary and allowances and other terms and conditions of service of Presiding Officers.—
The salary and allowances payable to, and the other terms and conditions of service (including pension,
gratuity and other retirement benefits) of, the 2
[Presiding Officer and other Members of a Securities
Appellate Tribunal] shall be such as may be prescribed:
Provided that neither the salary and allowances nor the other terms and conditions of services of the
3
[Presiding Officer and other Members of a Securities Appellate Tribunal] shall be varied to their
disadvantage after appointment.
15P. Filling up of vacancies.—If, for reason other than temporary absence, any vacancy occurs in
4
[the office of the Presiding Officer or any other Member,] of a Securities Appellate Tribunal, then the
Central Government shall appoint another person in accordance with the provisions of this Act to fill the
vacancy and the proceedings may be continued before the Securities Appellate Tribunal from the stage at
which the vacancy is filled.
5
[15PA. Member to act as Presiding Officer in certain circumstances.—In the event of occurrence
of any vacancy in the office of the Presiding Officer of the Securities Appellate Tribunal by reason of his
death, resignation or otherwise, the senior-most Judicial Member of the Securities Appellate Tribunal
shall act as the Presiding Officer until the date on which a new Presiding Officer is appointed in
accordance with the provisions of this Act.]
15Q. Resignation and removal.—(1) 6
[The Presiding Officer or any other Member of a Securities
Appellate Tribunal] may, by notice in writing under his hand addressed to the Central Government, resign
his office:
Provided that 7
[the Presiding Officer or any other Member] shall, unless he is permitted by the
Central Government to relinquish his office sooner, continue to hold office until the expiry of three
months from the date of receipt of such notice or until a person duly appointed as his successor inters
upon his office or until the expiry of his term of office, whichever is the earliest.
8
[(2) The Central Government may, after an inquiry made by the Judge of the Supreme Court, remove
the Presiding Officer or Judicial Member or Technical Member of the Securities Appellate Tribunal, if
he—
(a) is, or at any time has been adjudged as an insolvent;
(b) has become physically or mentally incapable of acting as the Presiding Officer, Judicial or
Technical Member;
(c) has been convicted of any offence which, in the opinion of the Central Government, involves
moral turpitude;
(d) has, in the opinion of the Central Government, so abused his position as to render his
continuation in office detrimental to the public interest; or
1. Subs. by Act 7 of 2017, s.148, for section 15N (w.e.f. 26-5-2017).
2. Subs. by Act 59 of 2002, s. 22, for “Presiding Officer of a Securities Appellate Tribunal” (w.e.f. 29-10-2002).
3. Subs. by s. 22, ibid., for “said Presiding Officers” (w.e.f. 29-10-2002).
4. Subs. by s. 23, ibid., for “office of the Presiding Officer” (w.e.f. 29-10-2002).
5. Ins. by Act 7 of 2017, s. 148 (w.e.f. 26-5-2017).
6. Subs. by Act 59 of 2002, s. 24, for “Presiding Officer of a Securities Appellate Tribunal” (w.e.f. 29-10-2002).
7. Subs. by s. 24, ibid., for “the said Presiding Officer” (w.e.f. 29-10-2002).
8. Subs. by Act 7 of 2017, s.148, for sub-section (2) (w.e.f. 26-5-2017)
23
(e) has acquired such financial interest or other interest as is likely to affect prejudicially his
functions as the Presiding Officer or Judicial or Technical Member:
Provided that he shall not be removed from office under clauses (d) and (e), unless he has been given
a reasonable opportunity of being heard in the matter.]
(3) The Central Government may, by rules, regulate the procedure for the investigation of
misbehaviour or incapacity of the 1
[the Presiding Officer or any other Member].
2
[15QA.Qualifications, terms and conditions of service of Presiding Officer and
Member.— Notwithstanding anything contained in this Act, the qualifications, appointment, term of
office, salaries and allowances, resignation, removal and the other terms and conditions of service of the
Presiding Officer and other Members of the Appellate Tribunal appointed after the commencement of
3
[the Tribunals Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]:
Provided that the Presiding Officer and Member appointed before the commencement of Part XIV of
Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act and the
rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into
force.]
15R. Orders constituting Appellate Tribunal to be final and not to invalidate its proceedings.—
No order of the Central Government appointing any person as the 4
[Presiding Officer or a Member] of a
Securities Appellate Tribunal shall be called in question in any manner, and no act or proceeding before a
Securities Appellate Tribunal shall be called in question in any manner on the ground merely of any
defect in the constitution of a Securities Appellate Tribunal.
15S. Staff of the Securities Appellate Tribunal.—(1) The Central Government shall provide the
Securities Appellate Tribunal with such officers and employees as that Government may think fit.
(2) The officers and employees of the Securities Appellate Tribunal shall discharge their functions
under general superintendence of the Presiding Officer.
(3) The salaries and allowances and other conditions of service of the officers and employees of the
Securities Appellate Tribunal shall be such as may be prescribed.
15T. Appeal to the Securities Appellate Tribunal.—5
[(1) Save as provided in sub-section (2),
any person aggrieved,—
(a) by an order of the Board made, on and after the commencement of the Securities Laws
(Second Amendment) Act, 1999 (32 of 1999), under this Act, or the rules or regulations
made thereunder; or
(b) by an order made by an adjudicating officer 6
[under this Act; or]
7
[(c) by an order of the Insurance Regulatory and Development Authority or the Pension Fund
Regulatory and Development Authority,]
may prefer an appeal to a Securities Appellate Tribunal having jurisdiction in the matter.]
8* * * *
(3) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the
date on which 9[a copy of the order made by the Board or the adjudicating officer 10[or the Insurance
Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority] as
1. Subs. by Act 59 of 2002, s. 24, for “aforesaid Presiding Officer” (w.e.f. 29-10-2002).
2. Ins. by Act 7 of 2017, s.178 (w.e.f. 26-5-2017)
3. Subs. by Act 33 of 2021, s. 17, for “Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of
section 184 of that Act” (w.e.f. 4-4-2021).
4. Subs. by Act 59 of 2002, s. 25, for “Presiding Officer” (w.e.f. 29-10-2002).
5. Subs. by Act 32 of 1999, s. 9, for sub-section (1) (w.e.f. 16-12-1999).
6. Subs. by Act 7 of 2017, s. 148, “under this Act,” (w.e.f. 26-5-2017)
7. Ins. by s.148, ibid. (w.e.f. 26-5-2017)
8. Sub-section (2) omitted by Act 27 of 2014, s. 18 (w.e.f. 18-7-2013).
9. Subs. by Act 32 of 1999, s. 9, for “a copy of the order made, by the adjudicating officer” (w.e.f. 16-12-1999).
10. Ins. by Act 7 of 2017, s.148 (w.e.f. 26-5-2017).
24
the case may be,] is received by him and it shall be in such form and be accompanied by such fee as
may be prescribed:
Provided that the Securities Appellate Tribunal may entertain an appeal after the expiry of the
said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within
that period.
(4) On receipt of an appeal under sub-section (1), the Securities Appellate Tribunal may, after
giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks
fit, confirming, modifying or setting aside the order appealed against.
(5) The Securities Appellate Tribunal shall send a copy of every order made by it to the
1[Board, 2
[or the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and
Development Authority, as the case may be] the parties to the appeal and to the concerned
adjudicating officer.
(6) The appeal filed before the Securities Appellate Tribunal under sub-section (1) shall be dealt
with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal
finally within six months from the date of receipt of the appeal.
15U. Procedure and powers of the Securities Appellate Tribunal.—(1) The Securities Appellate
Tribunal shall not be bound by the procedure laid down by the code of Civil Procedure, 1908 (5 of 1908),
but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and
of any rules, the Securities Appellate Tribunal shall have powers to regulate their own procedure
including the places at which they shall have their sittings.
(2) The Securities Appellate Tribunal shall have, for the purposes of discharging their functions under
this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908
(5 of 1908), while trying a suit, in respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) issuing commissions for the examination of witnesses or documents;
(e) reviewing its decisions;
(f) dismissing an application for default or deciding it ex-parte;
(g) setting aside any order of dismissal of any application for default or any order passed by it
ex-parte;
(h) any other matter which may be prescribed.
(3) Every proceeding before the Securities Appellate Tribunal shall be deemed to be a judicial
proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian
Penal Code (45 of 1860) and the Securities Appellate Tribunal shall be deemed to be a civil court for all
the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
2
[(4) Where Benches are constituted, the Presiding Officer of the Securities Appellate Tribunal may,
from time to time make provisions as to the distribution of the business of the Securities Appellate
Tribunal amongst the Benches and also provide for the matters which may be dealt with, by each Bench.
(5) On the application of any of the parties and after notice to the parties, and after hearing such of
them as he may desire to be heard, or on his own motion without such notice, the Presiding Officer of the
Securities Appellate Tribunal may transfer any case pending before one Bench, for disposal, to any other
Bench.
(6) If a Bench of the Securities Appellate Tribunal consisting of two members differ in opinion on
any point, they shall state the point or points on which they differ, and make a reference to the Presiding
1. Subs. by Act 32 of 1999, s. 9, for “parties” (w.e.f. 16-12-1999).
2. Ins. by Act 7 of 2017, s.148 (w.e.f. 26-5-2017).
25
Officer of the Securities Appellate Tribunal who shall either hear the point or points himself or refer the
case for hearing only on such point or points by one or more of the other members of the Securities
Appellate Tribunal and such point or points shall be decided according to the opinion of the majority of
the members of the Securities Appellate Tribunal who have heard the case, including those who first
heard it.]
1
[15V. Right to legal representation.—The appellant may either appear in person or authorise one
or more chartered accountants or company secretaries or cost accountants or legal practitioners or
any of its officers to present his or its case before the Securities Appellate Tribunal.
Explanation.—For the purposes of this section,—
(a) ”chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1)
of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of
practice under sub-section (1) of section 6 of that Act;
(b) ”company secretary” means a company secretary as defined in clause (c) of sub-section (1)
of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate of
practice under sub-section (1) of section 6 of that Act;
(c) ”cost accountant” means a cost accountant as defined in clause (b) of sub-section (1) of
section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate
of practice under sub-section (1) of section 6 of that Act;
(d) ”legal practitioner” means an advocate, vakil or an attorney of any High Court, and includes a
pleader in practice.]
15W. Limitation.—The provisions of the Limited Act, 1963 (36 of 1963), shall, as far as may be,
apply to an appeal made to a Securities Appellate Tribunal.
2
[15X. Presiding Officer, Members and staff of Securities Appellate tribunal to be public
servants.—The Presiding Officer, Members and other officers and employees of a Securities Appellate
Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code
(45 of 1860).]
15Y. Civil Court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any
suit or proceeding in respect of any matter which an adjudication officer appointed under this Act or a
Securities Appellate Tribunal constituted under this Act is empowered by or under this Act to determine
and no injunction shall be granted by any court or other authority in respect of any action taken or to be
taken in pursuance of any power conferred by or under this Act.
3
[15Z. Appeal to Supreme Court.—Any person aggrieved by any decision or order of the Securities
Appellate Tribunal may file an appeal to the Supreme Court within sixty days from the date of
communication of the decision or order of the Securities Appellate Tribunal to him on any question of
law arising out of such order:
Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient
cause from filing the appeal within the said period, allow it to be filed within a further period not
exceeding sixty days.]]