NCLT does not exercise parallel jurisdiction with SEBI for violations of insider trading regulations: Supreme Court

The procedure under the SEBI (SAST) Regulations cannot be short-circuited by making an application under Section 111A of the 1956 Act as SEBI and NCLT do not have parallel jurisdiction, the Court held.
Justices AS Bopanna and PS Narasimha
Justices AS Bopanna and PS Narasimha

The Supreme Court on Wednesday ruled that it was not permissible to circumvent the role of the Securities and Exchange Board of India (SEBI) by asking for a rectification under Section 111A of the Companies Act, 1956, when examining a transaction for alleged insider trading. (IFB Agro Industries Limited v. SICGIL India Limited and ors)

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