BANHEM SECURITIES P LTD Vs. NATIONAL STOCK EXCHANGE

JUDGEMENT

(1.) THE challenge in this petition is to the circular issued by the SEBI Board dated 9-7-1999, the relevant portion of which reads thus :

(2.) IN our opinion the challenge to the impugned circular is without any substance. The circular has been issued by the SEBI Board in exercise of powers under Sections 11 and 11b of the SEBI Act in order to protect interest of the investors. It has been brought to the notice of the SEBI Board that arbitration awards passed in favour of the clients/investors are not implemented and the Stock Exchanges are unable to take appropriate action in order to ensure implementation of the awards. In our opinion the decision taken by the SEBI is in the right direction. It helps to protect the investors. The circular issued by the SEBI is confined to members/brokers of the Stock Exchanges and there is no question of the circular being contrary to the provisions of Section 36 or any other provisions of the Arbitration and Conciliation Act, 1996. We do not find any illegality or arbitrariness in the circular.

(3.) PETITION is dismissed.