SAT quashes SEBI’s ban on key roles for ZEE’s Goenka

SAT quashes SEBI’s ban on key roles for ZEE’s Goenka

Subject : Economy

Section: Monetary policy

Context:

The Securities Appellate Tribunal (SAT) on Monday set aside an order of the  Securities and Exchange Board of India (SEBI) barring Zee Entertainment Enterprises Ltd.‘s CEO Punit Goenka from holding any key managerial position in the media house or any other company over allegations that he and his father, Zee founder Subhash Chandra, had siphoned off company funds.

About Securities appellate tribunal:

• It is a statutory body established under the provisions of the Securities and Exchange Board of India Act, 1992.
• It hears and disposes of appeals against orders passed by the Securities and Exchange Board of India, the Pension Fund Regulatory and Development Authority (PFRDA) and the Insurance Regulatory Development Authority of India (IRDAI).

Composition:

• It consists of a Presiding Officer & Two other members.
• The Presiding officer shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.
• It has the same powers as vested in a civil court under the code of civil procedure while trying a suit.

Key facts about SEBI

• It is a statutory regulatory body established by the Government of India in 1992.
• It was given statutory powers through the SEBI Act, of 1992.
• Objective: To regulate the securities market in India and protect the interests of investors in securities.