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The Securities Appellate Tribunal (SAT)

The Securities Appellate Tribunal, or SAT, is a critical institutional component of India's securities market regulation. This statutory body is mandated by the Securities and Exchange Board of India (SEBI) Act, 1992, and is primarily responsible for addressing appeals against decisions rendered by the SEBI or any statutory authority in the field of securities markets.

Structure and Composition of SAT

SAT is composed of a presiding officer and two other members appointed by the Central Government. According to the SEBI Act, these individuals are selected from amongst individuals who have been or are qualified to be a judge of a Supreme Court, or who have been a member of an Indian Legal Service and have held a post in Grade I of that service for at least three years.

Jurisdiction and Powers of SAT

Under Section 15T of the SEBI Act, SAT has been vested with the power to exercise jurisdiction, authority, and control over all matters related to securities and securities markets, which were previously in the hands of the SEBI or the Central Government. SAT can examine and adjudicate upon any appeal against a decision or order made by the SEBI or the Central Government pertaining to securities or securities markets.

Appeals Process in Securities Appellate Tribunal

A well-structured appeal process is established for appealing decisions made by the SEBI. Section 15U of the SEBI Act outlines the procedure for filing an appeal. An aggrieved party can file an appeal within 45 days of the date on which a copy of the order made by SEBI is received by the aggrieved person or the appellant.

Landmark Cases Handled by SAT

SAT's effectiveness in ensuring the smooth functioning of the securities market in India can be understood by looking at a few landmark cases:

  1. Subhkam Ventures (I) Pvt. Ltd. v. SEBI: This case challenged the SEBI's interpretation of the term 'control' in the context of acquiring shares or voting rights in a company. SAT overturned SEBI's order, stating that positive control (i.e., the ability to manage a company) is what should be considered, not potential control.

  2. NSE v. SEBI: In this case, SAT set aside a portion of SEBI's order against NSE, reducing the disgorgement amount from INR 625 crores to INR 240 crores and removing the six-month ban on NSE from accessing the securities market.

Impact and Importance of SAT

The establishment of SAT has significantly enhanced the efficacy of securities regulation in India. It provides an effective and efficient system for addressing disputes and appeals against the orders of the SEBI, thereby promoting fairness and transparency in India's securities market. SAT also plays a critical role in interpreting securities laws, thereby contributing to the development of securities jurisprudence in India.

Critiques and Challenges faced by SAT

Despite its numerous achievements, SAT faces a few challenges. There have been delays in adjudicating cases, primarily due to vacancies in the tribunal. Moreover, the lack of judicial members has often been a point of concern. Overcoming these challenges is crucial to further enhance the effectiveness of SAT in ensuring the smooth functioning of the securities markets.


In conclusion, SAT is an integral part of India's securities market infrastructure, providing an appellate mechanism against SEBI's orders. By providing a platform for grievances to be heard and resolved, SAT ensures that the market operates with fairness and transparency, thereby instilling confidence among investors and market participants.

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