SC stays SAT order holding that Sebi lacks power to bar auditors

News:The Supreme Court stayed an order of the Securities Appellate Tribunal (SAT) which had held that markets watchdog Sebi does not have the power to bar auditors.

Facts:

Background:

• The Securities and Exchange Board of India(SEBI) had filed an appeal in the Supreme Court against the SAT’s order. 
• The Securities Appellate Tribunal(SAT) in its order had set aside the ban on audit firm and had said that SEBI does not have the power to bar auditors.
• Setting aside the ban,the SAT had said that only the Institute of Chartered Accountants of India(ICAI) can take any action against auditors.

About Securities Appellate Tribunal(SAT):

• Securities Appellate Tribunal (SAT) is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act,1992.It’s headquarters is at Mumbai.
• The mandate of SAT is to hear and dispose of appeals against the orders passed by the (a)Securities and Exchange Board of India (SEBI) (b)Pension Fund Regulatory and Development Authority (PFRDA) and (c)Insurance Regulatory Development Authority of India (IRDAI).
• SAT consists of a Presiding Officer & two other members.The Presiding officer of SAT shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.

Additional information:

About SEBI:

• SEBI was established in 1992 in accordance with the provisions of the Securities and Exchange Board of India Act,1992 (SEBI Act).
• The basic functions of the SEBI is to protect the interests of investors in securities and to promote and regulate the securities market.
• The board of SEBI is a quasi-legislative and quasi-judicial body which can draft regulations, conduct inquiries, pass rulings and impose penalties.

About ICAI:

• The Institute of Chartered Accountants of India(ICAI) is the national professional accounting body of India. 
• It was established in 1949 as a statutory body under the Chartered Accountants Act,1949.
• ICAI is the only licensing cum regulating body of the financial audit and Chartered Accountancy profession in India.