SECURITIES & EXCHANGE BOARD OF INDIA vs AJAY AGARWAL

The Supreme Court examined the applicability of Section 11-B of the Securities and Exchange Board of India Act, 1992, in the context of restraining a corporate officer from accessing the securities market due to alleged misstatements in a prospectus. The Court held that the Chairman of SEBI could invoke this section in conjunction with Sections 4(3) and 11 to protect investor interests. The judgment emphasized the importance of full disclosure in public issues and affirmed the need for regulatory oversight in capital markets.