The Hon'ble
By way of background, the appellant in this case, is a trading member of the
Additionally, the email also did not indicate the particular penalty that was being considered. Consequently, the court concluded that the email could not be treated as a valid SCN. The court, drawing upon the precedent set by the Supreme Court in Gorkha Security Services vs. Government (NCT of
Furthermore, the court noted that the Bye-laws and Rules of MCX lacked a specified procedure for the imposition of penalties, despite the existence of prescribed powers for such actions. As a result, the court issued a directive for MCX to formulate a procedural framework governing the initiation of penalty proceedings against its members.
The judgment emphasizes that to follow the principles of natural justice is a 'sine qua non' to administrative proceedings. The Hon'ble Tribunal, in instructing MCX to devise a fitting procedure for commencing penalty proceedings, serves as a poignant reminder to both market participants and regulatory bodies. This underscores the imperative of adhering to fair and transparent processes within the securities market.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Mr Abhiraj Arora
Economic Laws Practice
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