The moon and Sebi

For the past couple of weeks, SAT presiding officer N K Sodhi has been dealing with the powers of Sebi in a case against the Sahara group. SAT has to decide whether the market regulator had powers over unlisted companies. To explain to the Sebi counsel Arvind P Datar the ambit of Sebi’s powers, Sodhi recalled a case in which the additional solicitor general had said Sebi can even send a man to the moon as long as it is to “protect the interest of investors and regulation of the securities market”. The Sebi counsel had the court laughing by readily agreeing. “Yes, my lord, Section 11 of the Sebi Act vests very wide powers,” he said with a straight face. But it was Fali S Nariman, the Sahara counsel, who had the last word when he added “provided the man on the moon is listed on the stock exchange”. No surprise, the next few moments in court were lost in gales of laughter.