Rapping the watchdog: Delhi HC order questions Sebi's penalty proceedings

A recent ruling by the Delhi High Court (HC), questioning the Securities and Exchange Board of India’s (Sebi’s) adjudication proceedings, could have implications for thousands of cases pending before the market regulator.

The case pertains to a show cause notice issued by Sebi to Amit Jain (petitioner), who held over five per cent stake in a listed-company Himalaya Granites, but failed to make disclosures under the Prohibition of Insider Trading (PIT) norms.

The petitioner contested the move on the ground that the Sebi board didn’t follow the prescribed procedure. 

According to him, the group of assistant managers of Sebi recommended proceedings against the