S.E.B.I. vs MAGNUM EQUITY SERVICES LTD. .

The Supreme Court upheld the decision of the Securities Appellate Tribunal, affirming that the Securities and Exchange Board of India (SEBI) correctly denied fee continuity to Magnum Equity Services Ltd. under Paragraph I(4) of Schedule III of the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992. The Court ruled that the loss of entitlement to fee continuity occurred when any of the erstwhile partners ceased to be Whole-time Directors, which was not complied with in this case. Consequently, the appeals by SEBI were dismissed, reinforcing the regulatory framework governing stock broker registrations.