Wisdom Capital, an online marketing and stockbroking services provider, on Monday moved the Delhi High Court in connection with the 'Peak Margin' Securities and Exchange Board of India (SEBI) circular, seeking early hearing which was scheduled for hearing in March.
The plea seeks a time-bound early hearing from the courts alleging that intentional delay in filing a response by the respondents may defeat the purpose of the writ petition.
"In the hope that all is not lost for the investors and financial intermediaries, the company moved the court as there is no response even after five weeks as ordered by the court, to the notification sent by court to SEBI and Union of India," the plea said.
The bench of Justice Jayant Nath on December 2, 2020, after hearing the submission made by Senior Advocate Sandeep Sethi who appeared for petitioner Wisdom Capital, had issued notice to SEBI and Union of India and directed them to file the response on it within four weeks.
According to Wisdom Capital/petitioner, the said SEBI's circular infringes on the constitutional rights of the investors, brokers, and compes directly involved in the financial markets under Article 14 and Article 19(1) (g) of the Constitution of India and that the circular is against the will and provision of Section 11 of SEBI Act.
"As per the act, SEBI was set up to regulate the market and create policies for the development of the financial markets. But the Board seems to be focussed on regulation than development. An unbalanced approach may lead to the obliteration of established markets. The company has requested an early hearing from the authorities," Wisdom Capital alleged.
"It will suffer an intangible loss of opportunity, one that cannot be quantified in monetary terms, if not granted early hearing in the matter," said Deb Mukherjee, CEO, Wisdom Capital in a statement.
In its petition, the company had sought directions from the court to revoke the SEBI circular at the earliest. The company opines that the SEBI circular on "Peak Margin" restrictions is subjective and inclined towards the interests of a handful of resourceful market players.
It also stated that the circular which has come into effect from December 1, 2020 is against the spirit and philosophy of the provisions of Section 11 of the SEBI Act is mfestly arbitrary in nature and also impinges upon the constitutional rights of the petitioner under Article 14 and Article 19 (1) (g) of Constitution of India.
( With inputs from ANI )
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