CHAIRMAN, S.E.B.I. vs SHRIRAM MUTUAL FUND

The Supreme Court ruled that under Section 15-Z of the Securities and Exchange Board of India Act, 1992, once a violation of the SEBI (Mutual Funds) Regulations, 1996 is established, the imposition of a penalty is mandatory. The Court held that the Shriram Mutual Fund's repeated breaches of the permissible limits for transactions constituted a clear violation of statutory regulations, thus affirming the Tribunal's decision to impose penalties. The judgment underscores the regulatory authority's obligation to enforce compliance strictly.