Functioning of SEBI will be hampered if exercise of every power is preceded by mandatory personal hearing: Bombay High Court

"It will hamper the functioning of the SEBI if the exercise of its every power is preceded by mandatory personal hearing, whether the regulation provides for it or not", the Court noted.
SEBI
SEBI
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The Bombay High Court Bench of Justices Nitin Jamdar and Milind Jadhav recently observed that Securities and Exchange Board of India (SEBI) cannot be expected to grant mandatory personal hearings before every exercise of its power.

In the instant case, the High Court declined to interfere with SEBI's decision not to grant JK Paper Ltd. an opportunity for a personal physical hearing with respect to an application made for exemption from the SEBI (Share Based Employee Benefits) Regulations, 2014, which were otherwise applicable to an employee stock option scheme started by JK Papers (JK Paper v. SEBI).

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