New Delhi: Supreme Court on Monday asked capital market regulator SEBI why it had outrightly rejected a high-powered committee’s report probing the IPO scam of 2006 and the role of NSDL in it. Court asked SEBI to present its stand in two weeks.

The bench comprising Justice R V Raveendran and Justice A K Patnaik said that the report submitted by the Committee, which comprised senior SEBI officials, should have been considered by the regulator.

"Committee's report should have been taken into consideration. Instead of taking action, you sidelined the report," the bench said, adding "This is a committee of SEBI members only and not of outsiders. Why did they say that it does not exist."

The apex court was also not convinced by submission of the Attorney General Goolam E Vahanvati that the committee exceeded its limit.

The bench shot back at his argument, "We would like to see. Show us a single order given by the committee in NSDL matter where it exceeded its jurisdiction.

"Whatsoever they said (against SEBI) was self retrospection and this is not wrong. You could not have ignored it," the bench said.

The Committee had also passed remarks against the manner in which SEBI had functioned in the IPO scam.

Over the submissions of Attorney General that CB Bhave was no longer chairman of the Securities and Exchange Board of India, the bench said," even if Mr Bhave is not there, what so ever suggestion the committee has made, you (SEBI) should take a decision over it. Consider the suggestion and think about the market".

The apex court further said that at this stage it would not issue notice to any one and would like to await the view of the SEBI on this.

 

(JPN/Bureau)