TRILOCHANA K DOSHI Vs. STOCK EXCHANGE OF INDIA

JUDGEMENT

(1.) HEARD all the learned Counsel at length.

(2.) IN the above, a preliminary objection has been raised by respondent No. 2, contending that a writ under Article 226 of the Constitution of India would not lie against respondent No. 1, viz. Stock Exchange, Mumbai.

(3.) THE respondent No. 1 Stock Exchange, Mumbai is a recognised stock exchange under the provisions of Securities Contracts (Regulation) Act, 1956. The said exchange is governed by its own rules, bye-laws and regulations. Under section 3 read with with section 19 of the aforesaid Act, the said exchange is recognised by the Central Government. Section 5 empowers the Central Government to withdraw the recognition, thereby to shut down the exchange. The exchange has to file periodical returns and annual report with the Central Government and the Securities of Exchange Board of India. As per the provisions of the above Act, the Rules and Bye-laws have to be approved by Securities and Exchange Board of India, hereinafter referred to as S. E. B. I. and also by the Central Government, which can also direct carrying out of amendments. S. E. B. I. can nominate upto three members on the Governing Board of the Exchange. Under section 11 of the said Act, the Central Government can supercede the Governing Board of the Exchange and under section 12, it can suspend all the business of the Exchange. Under section 22 of the said Act, an Appeal lies to the Central Government, against refusal to list securities of public companies. S. E. B. I. is fully empowered to conduct enquiries into the affairs of the Exchange, Governing Board and its members.