The Securities Appellate Tribunal (SAT) is a statutory and autonomous body established under the SEBI Act, 1992. Its primary function is to hear and resolve appeals against orders issued by the Securities and Exchange Board of India (SEBI) or an adjudicating officer under the Act. SAT also has jurisdiction, powers, and authority conferred by this Act and other relevant laws.
SAT hears appeals against the following types of orders:
- Orders issued by the Insurance Regulatory and Development Authority of India (IRDAI) related to cases filed before it.
- Orders issued by the Pension Fund Regulatory and Development Authority (PFRDA) related to cases filed before it.
- Orders passed by SEBI.
Composition of SAT:
- SAT is composed of the following members:
- One Presiding Officer.
- A certain number of Judicial and Technical Members as determined by the Central Government.
Qualification & Tenure for SAT Members:
- Presiding Officer:
- Judicial Member: Judge of a High Court with at least five years of service.
- Technical Member: A person with proven ability, integrity, and at least 15 years of professional experience in the financial sector, including securities market, pension funds, commodity derivatives, or insurance.
Appointments are made by the Central Government in consultation with the Chief Justice of India or its nominee. The tenure for members is five years, with the possibility of reappointment for another five years, but no member can hold office after reaching the age of 70.
Powers of SAT:
SAT possesses powers similar to those of a civil court under the Code of Civil Procedure for various matters, including summoning persons, requiring document production, receiving evidence on affidavits, issuing commissions, and more.
Appeal to SAT:
Any person dissatisfied with an order made by SEBI or an adjudicating officer can appeal to SAT within 45 days of receiving the order, accompanied by the required form and fees. SAT may consider appeals filed after this period if there is sufficient cause.
Jurisdiction of Civil Court:
No civil court can entertain suits or proceedings related to matters within the jurisdiction of an adjudicating officer or SAT. No injunction can be granted against actions authorized by this Act.
Appeal Against SAT’s Order:
Persons unhappy with SAT’s decisions can appeal to the Supreme Court solely on questions of law within 60 days of receiving SAT’s decision. An additional 60-day extension may be granted for sufficient cause.