SECURITIES AND EXCHANGE BOARD OF INDIA vs SHRI KANAIYALAL BALDEVBHAI PATEL

The Supreme Court addressed the legality of 'non-intermediary front-running' in the securities market under the SECURITIES AND EXCHANGE BOARD OF INDIA (PROHIBITION OF FRAUDULENT AND UNFAIR TRADE PRACTICES RELATING TO SECURITIES MARKET) REGULATIONS, 2003. The Court held that the SEBI Appellate Tribunal must independently assess the findings and conclusions regarding liability for penalties, rather than assuming similarity in cases without proper evaluation. The judgment emphasized the necessity for thorough investigation and distinct findings in cases of alleged front-running, ultimately remanding the matter for further consideration.