Background Matrix 

In the Instant Matter of Venkataraman Rajaman v. Securities and Exchange Board of India By the fit and suitable person requirements of Clause 3(b)(ii) of Schedule II SEBI Intermediaries Regulations, 2008, petitions have been filed in opposition to notifications issued by the Securities and Exchange Board of India. According to fit and suitable person standards, SEBI had outlined automatic disqualifications under the 2008 Regulations. In response to the notifications, IIFL Securities Limited and 5 Paisa were expected to take action within 15 days and submit a compliance report. The demands for compliance included the petitioner’s immediate dismissal, the suspension of their ability to vote, and the compulsory sale of their stock. 

Argument Advance

The attorney for SEBI said that SEBI was not pushing on compliance within 15 days because of the challenges put forth and the ongoing cases before the High Court. The relief provided by SEBI to the parties against whom notifications were issued against compliance has drawn criticism.

Bombay HC order 

Following SEBI’s clarification that compliance with the notice’s criteria within 15 days was not required while cases were ongoing before the Court, the Bombay High Court’s Division Bench, composed of Justices G.S. Patel and Neela Gokhale, listed the matter in August.

CASE NAME – Venkataraman Rajaman v. Securities and Exchange Board of India, WP(L) No. 17978/23