Senior Advocate EK Nandakumar, appearing for BRD Securities, contended that the proposed proceedings being quasi-judicial in nature can be conducted only by the SEBI Board as per the SEBI Act and cannot be delegated to an officer of the SEBI.
Although Section 19 of the SEBI Act provides for delegation of the Board’s powers and functions (except the powers under Section 29) to any member or officer of the Board, or any other person, the provision does not envisage delegation of quasi-judicial functions of the Board, he contended.
He argued that the SEBI (Delegation of Statutory and Financial Powers) Order, 2019, issued in purported exercise of power under Section 19, provides for the delegation of the Board’s function, including those under Sections 11(1), 11(4A), 11B(1), 11B(2), 11B of the SEBI Act or any regulations framed by SEBI to the Chief General Manager, are ultra vires (error of law) of the SEBI Act, to the extent the quasi-judicial functions of the Board is delegated.
Source: Barandbench
