Proceedings under Section 12A of SEBI Act must be initiated within a reasonable time: SAT

The Securities Appellate Tribunal (SAT) in Mumbai, while quashing the order passed by the assessing officer, decided that the proceedings under section 12A of the SEBI Act must be initiated within a reasonable time.

During the period May 1, 2008, to September 30, 2009, the securities exchange board of India has investigated to monitor the irregular trading activities under Sterling International Enterprises Ltd. A show-cause notice dated February 12 2020, was issued to the appellant to show why action shouldn’t be taken against them under section 15A for violating section 12A read with regulations 3 and 4 of the Prohibition of Fraudulent and Unfair Trade Practices.